Gold up on safe-haven buying ahead of U.S. election uncertainty
Gold rose on Thursday as uncertainty over the outcome of the U.S. election upheld the safe-haven demand for bullion and weakened the dollar, offsetting signals from the Federal Reserve that it could hike interest rates next month.
Some people think that Donald Trump would become the U.S. president and if that happens it is negative for the U.S. dollar and positive for gold.
Narrowing polls have led markets to price in more risk that Republican Donald Trump might defeat his Democratic rival Hillary Clinton in next week's contentions U.S. presidential election.
Major economic data ahead:-
- GBP Interest rate decision - 5:30pm
- US initial jobless claims – 6:00 pm
- US Nonfarm productivity – 6:00pm
- US Service PMI – 7:15PM
- US ISM non-manufacturing PMI – 7.30pm
Crude Oil down as inventories increase
Crude oil prices down in Asia as U.S. crude oil stockpiles soared more than 14 million barrels last week, the largest weekly build since the U.S. Energy Department started keeping records in 1982, bolstered by hefty imports and a decline in refining runs.
Crude inventories rose 14.4 million barrels in the week to Oct. 28, the EIA said on Wednesday, compared with expectations for an increase of 1.0 million barrels.
The massive build in supply represents a rebound after several weeks of sharp draw downs in inventories that were kicked off by a 14-million-barrel draw in early September. That drop was initially thought to be an anomaly because of storm activity, but six of the seven weeks that followed also showed draw downs.
Refinery crude runs fell 104,000 bpd as utilization rates fell 0.4 percentage point to 85.2 percent of total capacity, data showed.