LIVE BULLION UPDATE ::
Gold prices edged lower in early Asian trade on Tuesday as the dollar strengthened, while investors awaited U.S. midterm election results for market direction.
Spot gold XAU= was down about 0.2 percent at $1,228.20 per ounce at 0452 GMT while U.S. gold futures GCcv1 fell 0.2 percent to $1,230.5 per ounce.
“Dollar is a little bit firmer so that’s putting some pressure on gold,” a Hong Kong-based trader said, adding, gold will be trading mostly sideways until the midterm elections results.
Investors braced themselves for U.S. midterm elections due later in the day which may fuel interest in bullion as a hedge against risk if the result sparks volatility in the wider financial markets.
The dollar index .DXY , which measures the greenback against a basket of six major currencies, was up about 0.1 percent, while Asian shares wobbled supported by Wall Street gains although sentiment was tempered ahead of the elections. USD/ MKTS/GLOB
Dollar-denominated gold, which is used as an alternative investment during times of political and financial uncertainty, becomes more expensive for users of other currencies when the greenback firms.
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