Investing.com - Gold prices moved higher on Tuesday as voting in the U.S. midterm elections got underway and traders opted for safety ahead of the outcome.
At 9:13 AM ET (14:13 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange gained $4.40, or 0.36%, to $1,234.20 a troy ounce.
Voters on Tuesday will decide key races in Congress and state governments, with market participants cautious as the results could influence U.S. President Donald Trump’s ability to pass additional tax and trade reforms.
Opinion polls point to the likelihood that Democrats could win control of the House of Representatives, although Republicans are widely expected to reinforce their hold on the Senate.
While a split Congress would likely reduce the chances of major policy changes, including Trump’s plans for further tax cuts, political experts believe that Democrats and Republicans would be in favor of a compromise on infrastructure spending that could boost stocks.
An unexpected win in both the House and Senate by the Democrats could spook equities on fears that the risk of impeachment would rise.
Uncertainty surrounding polls’ accuracy is rampant in the markets, with Trump himself reminding the voting public how far off they were when they pointed to rival Hillary Clinton becoming the U.S. president in the 2016 election.
Some investors have been getting into gold as a hedge should the stock market, which had its worst rout in nearly three years in October, tumble again on a Democratic victory.
In other metals trading, silver futures fell 0.12% at $14.630 a troy ounce by 9:15 AM ET (14:15 GMT).
Palladium futures lost 0.57% to $1,115.20 an ounce, while sister metal platinum gained 0.90% at $877.20.
In base metals, copper inched up 0.09% to $2.758 a pound.