Gold price edges higher amid US presidential election uncertainty

• Gold price drifts higher in Monday’s Asian session. 
• Safe-haven demand amid US presidential election uncertainties, persistent Middle Eastern tensions, might lift the Gold price. 
• Traders brace for the US election outcome on Tuesday ahead of the Fed rate decision.

The Gold price (XAU/USD) trades in positive territory on Monday. The US presidential election risks and the ongoing Middle East geopolitical tensions are likely to underpin the yellow metal, a traditional safe-haven asset, in the near term. Nonetheless, the renewed Greenback demand and higher US bond yields might cap the upside for Gold price as higher yields make non-yielding assets like bullion less attractive in comparison.

Investors will closely watch the looming US presidential election on Tuesday. The attention will shift to the US Federal Reserve (Fed) rate decision on Thursday. The uncertainty over the US election outcome is one reason markets assume the Fed will deliver a rate cut of the usual 25 basis points (bps) on Thursday, rather than repeat its outsized half-point easing.