The Daily Market Report: Gold Rebounds from Intraday Selling Pressure

03-Nov (USAGOLD) — Gold turned choppy after pushing back above $1300 on Wednesday for the first time since early-October. The yellow metal corrected back to 1284.80 in Europe, where renewed buying interest surfaced. Gold is now back above $1300, nearly $20 off the intraday low.

Data this morning were mixed, but the bigger than expected jump in Q3 productivity lends some credence to a possible December rate hike. The Fed opted to hold steady yesterday, but the door is definitely open for a hike before year-end. Gold displayed good resilience, despite perhaps a slightly more hawkish than expected policy statement.

Tomorrow’s release of October jobs data will likely shed further light on the prospects of Fed action. If the labor market proves weaker than expected, that all-but-assured rate hike could fall right off the table once again.

Then of course there is the U.S. presidential election coming up on Tuesday. The recent rebound in the gold price has been attributed to the tightening in the polls, as renewed uncertainty drives demand for the ultimate of safe-havens.

“We expect that both the presidential and congressional elections results will be supportive of gold regardless of the outcome, given the high uncertainty in the direction of policy and the possibility that the results may be contested,” said the World Gold Council. They went on to add the following: “In our view, rising nationalist movements and political uncertainty around the world, as well as the prevalence ineffective monetary policies, make gold a valuable hedge and key component to investment portfolios long term.”