Globe Capital Research Report

Bullions counter may witness profit booking at higher levels as investors prepared for a crucial week for the global economy, marked by the U.S. presidential election and the likelihood of further interest rate cuts.

The US presidential election will be held on Nov. 5 between Vice President Kamala Harris and Republican challenger Donald Trump. Besides politics, the attention will be on the Federal Reserve meeting from Nov. 6-7 where policymakers decide whether the US economy and inflation are cooling enough to warrant another rate cut. Bank of England will also make its own rate decision with a similar expectation of a 25-bps cut.

BULLION – U.S. election anxieties push gold towards its best month in seven  

Bullions counter may trade on mixed path as gold prices climbed to a record high on Thursday and were headed for their best month in seven on safe-haven demand ahead of the U.S. presidential election, while investors awaited U.S. inflation report for clues on the interest rate path.

The Union government's fiscal deficit expanded to 29.4% of the budgetary target at the end of the first six months for the financial year ending March 2025. The gap between expenditure and revenue during April-September stood at Rs 4.75 lakh crore of the total limit set at Rs 16.85 lakh crore for the ongoing fiscal, according to provisional data released on Wednesday by the Controller General of accounts. The Union government had set a fiscal deficit target of 4.9% of GDP for the financial year ending March 2025, as it aims to continue on its fiscal consolidation path. This is after bettering its deficit target for the last fiscal to 5.6% of GDP.

BULLION  – US election uncertainty lifts gold prices to record high