Gold stays above $3,900, ahead of US midterm results

Spot gold was trading at $3,907.65 an ounce on Tuesday, up 0.84% at 01:00 pm PST, as investors awaited the US midterm election results, Mettis Global reported. The metal remained above $3,900 amid uncertainty over the election outcome.

Developments in US-Iran contacts and interest-rate expectations also featured in the market backdrop. Oil prices fell more than 7% on Monday, while traders saw a 74% chance of a Federal Reserve rate increase in December; higher energy prices were cited as a factor supporting expectations of rates staying elevated, which can raise the cost of holding bullion. Silver declined 1.8% to $49.71 an ounce, platinum eased 0.2% to $1,446.80, and palladium dropped 1.4% to $953.64.