Gold firm at $3,939 with US midterm results in focus

Gold was little changed on Wednesday, November 4, as a softer US dollar provided support while investors awaited results from the US midterm elections. Mettis Global reported spot gold at $3,939.22 an ounce, down 0.11% as of 09:32 am PST.

Market participants were also waiting for Friday’s US non-farm payrolls figures for clues about the Federal Reserve’s next policy steps. CME’s FedWatch tool showed a 78% probability of a rate increase in December; higher rates can reduce bullion’s appeal because it does not pay interest.

Other precious metals declined, with spot silver down 1.3% to $49.12 an ounce, platinum lower by 1.9% at $1,389.54, and palladium down 0.6% to $928.23. Reuters reported that early Democratic Senate gains lifted expectations of a possible change in chamber control, although the final election outcome was not clear.