Gold (GC=F)

Gold prices continue to hit fresh highs as demand for the precious metal surges ahead of the US election and Diwali.

Spot gold was up by 0.1% at $2,781.50 per ounce at the time of writing, but had topped $2,789.73 earlier, while US gold futures rose 0.4% to $2,794.50.

"Gold is very much being anchored on the US election outcome. In the near term, spot gold will face resistance at $2,800, then followed by $2,826," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

Uncertainty surrounding the upcoming US presidential election have pushed investors to the safe-have asset.

Ole Hansen, head of commodity strategy at Saxo Bank, said: “Given the lack of response to the Middle East de-escalation seen in crude oil prices — which slumped the most in two years on Monday — we conclude that the latest strength is increasingly being seen as a hedge against a potential 'Red Sweep' at the 5 November US election, where one political party, in this case, the Republicans, controls both the White House and Congress,” Hansen said in a note.

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The US will head to the polls next week to elect a new Congress and president, with the polls too close to call in most battleground states.

The record high prices were not enough to stop Indian buyers of gold for the Dhanteras and Diwali festivals starting on Tuesday, amid hopes bullion would continue to rally and deliver promising returns.

"People are still into gold big time, even with prices at record highs during Dhanteras. With gold giving better returns than the stock market, there's been solid demand for coins and bars," Saurabh Gadgil, chairman of PNG Jewellers, told Reuters.

Robust demand in the world's second-biggest gold consumer could further support global prices, which hit record highs last week. Rising demand for imports of gold could also widen India's trade deficit and put pressure on the rupee.

However, Goldman Sachs has lowered its gold forecast to $3,000 from $3,080 by December 2025. But it did maintain its bullish stance.

Oil (BZ=F)

Oil prices recouped some of its losses on early European trading on industry data showing a surprise drop in US crude and gasoline inventories.

Brent crude futures rose by 0.7%, trading at $71.25 per barrel, while US West Texas Intermediate (WTI) (CL=F) gained 0.9%, reaching $67.82 per barrel at the time of writing.

Figures from the American Petroleum Institute revealed that US oil inventories experienced a draw of 0.57 million barrels in the past week, compared to market expectations for a build of 2.3 million barrels.