Gold rises on US election uncertainty

Gold rose as markets were left wondering whether it would help or hinder Donald Trump’s chances of returning to the White House. Bullion rose as much as 0.5% in early Asia trading, boosted by appetite for safe havens amid growing uncertainty over a turbulent U.S. election campaign. Biden has said he will end his term and has endorsed Vice President Kamala Harris as his running mate, but he still needs to be formally nominated by Democrats at the party’s national convention next month. Polls show Trump leading the way as the November general election looms. Support for the Republican candidate has surged since he escaped a shooting at a rally in Pennsylvania on July 13. Gold was also supported by a decline in the dollar as markets opened on Monday, potentially prompting investors to bet that Trump would press for a weaker U.S. currency if he wins. A stronger dollar is generally a negative for bullion, which is priced in dollars. There is uncertainty about what a potential Trump victory could mean for the precious metal. Some markets have raised expectations for higher trade tariffs, rising U.S.-China tensions and looser fiscal policy under his leadership, amid what has been called a “Trump trade.” Bullion hit a record high last week after gaining support this year on growing bets the Fed will ease its grip on quantitative easing. Low interest rates are generally a positive for gold. Spot gold rose 0.3 percent to $2,408.99 as of 8:12 a.m. Singapore time. The Bloomberg Dollar Spot Index fell 0.2 percent. Silver, platinum and palladium all gained.