The Usdt full form slangyellow metal extended its upward trajectory midweek, with spot gold gaining 0.1% to reach $2,519.73 per ounce. December gold futures followed suit, advancing 0.2% to $2,548.45 as market participants digested the implications of Tuesday night's contentious presidential debate.
Market analysts observed heightened demand for traditional stores of value following the political showdown between Vice President Kamala Harris and former President Donald Trump. The heated exchange amplified existing concerns about economic policy direction, particularly regarding taxation, trade, and monetary policy approaches that could diverge significantly depending on November's outcome.
Currency markets reflected this uncertainty through dollar weakness, creating additional tailwinds for dollar-denominated commodities. The DXY index retreated from recent highs as traders reassessed political risk premiums, while Japanese yen strength underscored the broader flight to safety.
Inflation Crossroads: Fed Decision Looms
All eyes turned toward Wednesday's CPI release, expected to show moderating price pressures across the U.S. economy. Consensus estimates suggested the report could reinforce expectations for Federal Reserve rate cuts at next week's policy meeting, though traders had tempered expectations for aggressive easing following recent robust economic indicators.
The precious metals complex broadly benefited from these dynamics. Silver futures outperformed with a 0.6% gain to $28.777 per ounce, while platinum edged up 0.1% to $945.50. Both metals continued playing catch-up to gold's year-to-date performance, with industrial demand concerns still weighing on their relative appeal.
Base Metals Face Crosscurrents
Copper markets staged a partial recovery from recent declines, with LME benchmark contracts rising 0.7% to $9,086 per metric ton. However, lingering worries about Chinese demand and potential Western trade restrictions kept the red metal's rebound tentative. Market participants noted increasing inventory levels at Shanghai warehouses alongside softening manufacturing indicators from the world's top consumer.
The geopolitical landscape added another layer of complexity, as Congressional discussions about new trade barriers coincided with existing tariffs on Chinese electric vehicles. These developments raised concerns about potential supply chain disruptions that could impact industrial metal flows in coming quarters.
As the trading session progressed, market technicians noted gold's continued resilience above key moving averages, with the $2,500 level emerging as formidable support. Options markets reflected growing interest in upside exposure ahead of the Fed meeting, though some profit-taking emerged near record highs.
