(Bloomberg) — Gold advanced toward a record as traders prepared for key data that will help to set the stage for the next Federal Reserve policy decision, while the countdown to the US presidential election continued.
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Bullion climbed above $2,756 an ounce as investors waited for inflation and payroll figures this week, with the reports set to show underlying resilience in the economy and a hiccup in the labor market after two hurricanes likely impacted jobs growth. Economists still expect policymakers to cut rates by a quarter percentage point at their Nov. 6-7 meeting. Lower borrowing costs are typically negative for the non-yielding metal.
Gold has surged by about a third this year, notching a record high just below $2,760 last week, on central-bank buying and sustained haven demand. With the US presidential election between Kamala Harris and Donald Trump too tight to call, bullion has managed to post a run of three consecutive weekly gains even as Treasury yields have been pushing higher, a shift that can at times be a headwind for the commodity.
Money managers have played their part, with hedge funds raising net-long positions in gold and investors adding to exchange-traded fund holdings.
Spot gold was 0.5% higher at $2,756.45 an ounce at 10:32 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Silver rose more than 1% to top $34 an ounce, while palladium and platinum also gained.
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