Gold and silver continue to strengthen
After reaching more than three-week high price levels on November 1, gold continued to move higher on November 2. At 1:00 PM EST on November 2, the COMEX gold futures contract for December delivery moved to 1,306.25 per barrel—a gain of ~1.4%. The COMEX silver contract for December delivery was trading at $18.71 per pound—a gain of ~1.6%.
Gold draws support from election uncertainty and the weaker dollar
Uncertainty about the outcome of the US election is supporting precious metal prices. With polls showing a lead for Donald Trump, investors showed interest in safe-haven assets such as gold and silver. Gold started the day on a stronger note and moved much higher due to the weaker dollar. The weaker dollar supports the prices of dollar-denominated commodities such as gold, silver, and copper. It pared gains after the release of the FOMC statement by the Fed at 2:00 PM EST. Read Copper Fell, Gold and Silver Are Strong Early on November 2 to learn how metals traded in the early hours on November 2.
The Fed left the interest rate unchanged in its two-day November meeting. It gave signals on an interest rate hike in December as the economy improves and inflation moves up. The market is looking forward to the non-farm payroll data and unemployment rate data scheduled to release at 8:30 AM EST on November 4. On November 2, precious metal producers such as Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell 1.6%, 2%, 1.4%, and 0.83%, respectively. The SPDR Gold Trust ETF (GLD) rose 0.73%.