Analysis of today's market

On Monday, gold prices fluctuated. The risks associated with the U.S. presidential election and ongoing geopolitical tensions in the Middle East could support gold in the short term, as gold is a traditional safe-haven asset. However, new demand for the U.S. dollar and higher U.S. bond yields may cap gains in gold prices, as higher bond yields reduce the appeal of non-yielding assets such as gold bars.

On Tuesday, investors will keep a close eye on the looming U.S. presidential election. On Thursday, attention will shift to the interest rate decision by the Federal Reserve. Uncertainty over the U.S. election outcome is one of the reasons why markets believe the Fed will cut interest rates by 25 basis points on Thursday, rather than repeating its excessive easing of half a percentage point.

Gold hovered around 2736, with the highest point reaching near 2738 and the lowest near 2735 as of press time. Resistance levels to watch are 2760-2770-2780. If these levels are not breached, gold prices may test the support levels at 2720-2710-2700.