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Gold futures ended higher on Tuesday as data revealed a decline in consumer confidence over the U.S. jobs market and economy, boosting the precious metal’s haven appeal.
U.S. consumer confidence waned in October, with the index dipping to 100.3 this month from a pandemic high of 101.3 in September.
Overall, however, gold is “still pinioned in narrow ranges,” Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX, wrote in a Tuesday newsletter. “The virus, the sclerotic talks in Washington and the path of the election campaign continue to keep players largely side-lined.”
Gold futures made only modest moves higher in the past two days, but were on track Tuesday to post their sixth gain in seven sessions amid ongoing uncertainty around the 2020 presidential election set for Nov. 3. Expectations that the U.S. may further increase its fiscal deficits, if the elections in America lead to a sweeping victory for Democrats, are viewed as a potential longer-term boost for gold and silver prices.
“The precious metals are pausing ahead of what is arguably the most important event of the trading year—the U.S. elections in one week,” said Jim Wyckoff, analyst at Kitco.com.
“Many markets could pause until after the election results are in. Many traders will want to step away from the markets, or take some risk off the table, due to the still highly uncertain outcome of the presidential election,” he said in a market update.
Gold for December delivery GCZ20, +0.35% GOLD, +1.01% tacked on $6.20, or 0.3%, to settle at $1,911.90 an ounce on Comex following a modest 50-cent gain Monday. The settlement was the highest for a most-active contract since Oct. 21 and prices tallied a sixth gain in seven sessions.
Meanwhile, December silver SIZ20, +0.59% SI00, +0.59% added 15 cents, or 0.6%, at $24.57 an ounce.
Monday’s move for gold came as COVID-19 cases stage a resurgence, hitting a daily record on Friday, with European countries imposing tougher social-distancing restrictions.
U.S. equities on Tuesday were mixed, though finding some support from upbeat corporate news, including a number of deal announcements, and, perhaps, bets on greater spending by the government to help the relief the economic pressures created by the pandemic.
A report Tuesday on orders for long-lasting goods, showed a rise of 1.9% in September, but didn’t do much to change the momentum in precious metals buying.
Among other metals traded on Comex, December copper HGZ20, +0.21% rose 0.1% to $3.0935 a pound. January platinum PLF21, +1.19% added 1.1% to $886.80 an ounce, but December palladium PAZ20, -0.57% lost 0.6% to $2,353.90 an ounce.
