Gold prices held firm at $2,740 an ounce as the U.S. presidential election between Democrat Kamala Harris and Republican Donald Trump injected fresh uncertainty into global markets, a factor that often underpins demand for the precious metal. However, the dollar’s recent strength threatens to weigh on gold’s appeal for overseas buyers, complicating its near-term outlook.
Investors are closely watching the election’s impact on gold. Deutsche Bank analysts suggested that a Harris victory could temporarily dampen bullion demand as markets stabilize and risk appetite improves. That said, a weaker dollar under her administration may stimulate buying in key markets like China and India, where gold is heavily influenced by currency dynamics.
A Trump win, by contrast, could lift gold prices as renewed trade tensions and geopolitical risks rekindle demand for safe-haven assets. “A second Trump term could revive uncertainty around global trade policies, which historically favors gold,” noted analysts at Commerzbank. 
The precious metal has surged over 30% this year, driven by fears surrounding global economic instability, Federal Reserve rate cuts, and heightened geopolitical risks. Prolonged uncertainty around the election outcome—such as a delayed or contested result—could further boost gold’s appeal, analysts say, with investors seeking protection from market volatility.
