Gold prices rose slightly during the Asian trading period on Monday, to stabilize the prices of the precious metal above the levels of 2730 dollars per ounce after falling for two consecutive sessions, as the markets prepare for the upcoming US presidential elections and the decision of the Federal Reserve.
Speculation has been prompted that if Donald Trump wins, he will fuel this inflation through expansionary fiscal policies and high tariffs, so investors have recently kept gold as a kind of hedge against long-term inflation risks.
However, the outlook was balanced as the latest opinion polls pointed to a close race between the presidential candidates, with a slight lead for Kamala Harris.
Forecasts indicate that if neither team achieves an absolute victory and control over the White House and Congress, the markets are likely to be concerned about excessive government spending, and gold retains a bullish outlook due to concerns about financial instability, safe haven demand, as well as geopolitical tensions in the region.
It is widely expected that the Fed will implement a modest reduction in interest rates by 25 basis points, after a significant reduction of half a percentage point last September, with the markets also taking into account another quarter-point cut in December.
On the other hand, renewed tensions in the Middle East continued to enhance the attractiveness of safe havens.
