Gold holds steady near $2,740 ahead of election and Fed meeting

Gold prices stabilized around $2,740 per ounce on Monday after experiencing two days of declines.

Gold holds steady near $2,740 ahead of election and Fed meeting

A weaker US dollar aided the stabilization as markets prepared for the upcoming US presidential election and the Federal Reserve's policy announcement. Speculation that a second Trump presidency could drive inflation through expansionary fiscal measures and increased tariffs has prompted investors to turn to gold as a hedge against long-term inflation risks. However, opinion polls showing a tight race between the presidential candidates moderated expectations.

Fed set to cut rates as Middle East tensions boost gold

Additionally, the Fed is expected to announce a modest 25 basis point interest rate cut this week, following a significant half-percentage point reduction in September. Meanwhile, ongoing tensions in the Middle East have further bolstered the safe-haven appeal of gold.