The gold price continued to rally today, racking up its 6th straight day of gains ahead of tonight’s first presidential debate between Hillary Clinton and Donald Trump who at the moment are neck and neck in the polls.
At 6.06pm (GMT) the Gold was trading at $1,340 up from $1,338 in yesterday’s trade.
After coming under pressure earlier in the session, the precious metal rebounded as expectations grew that Trump could muster up a strong performance in the debate, which would increase his chances of becoming president in 6 weeks’ time.
These expectations are likely to underpin gold and even keep the rally going in the foreseeable future
"If Trump is perceived to have an improved probability of winning the presidential race, that is likely to be supportive of the gold prices, so we could see gold prices rallying in the short term amid higher volatility," said National Australia Bank analyst Vyanne Lai.
A speech later this week by US Federal Reserve president Janet Yellen is also likely to cause volatility in the gold price as the question of an interest rate hike resurfaces.
Yellen has been one of the few Fed board members who have refrained from committing to a rate hike this year and if she takes the same stance a movement in rates is not likely until next year and the gold price is bound to jump higher.