By Wael Makarem

Gold stabilized after two sessions of decline as markets geared up for the closely watched U.S. presidential election and the Federal Reserve’s policy decision. Recent opinion polls show a tight race between Vice President Harris and former President Trump. The uncertainty could lead to some volatility in the next few days as traders react to the election’s results.

At the same time, gold could continue to see support if the Federal Reserve keeps cutting rates, although expectations retracted in regard to the pace of monetary policy easing. The Fed is expected to announce a 25 basis point interest rate cut this week, following a more significant half-percentage point reduction in September. Markets are also anticipating another quarter-point cut in December.

Ongoing tensions in the Middle East could further contribute to the safe-haven appeal of gold, supporting prices along with persistent demand from central banks and economic uncertainties.

• Makarem Financial Markets Strategists Lead at Exness