Gold steadies at fresh highs on uncertainty ahead of US presidential election

Gold hits fresh record highs on increasing demand for safe havens amid the US political uncertainty.

US Treasury yields’ reversal from mid-term highs has increased bullish pressure on the precious metal.

XAU/USD rally looks overextended, with the RSI showing a bearish divergence.

Gold price (XAU/USD) has stretched to fresh record highs on Wednesday, favored by a combination of higher demand for safe-haven assets amid the US political uncertainty and retreating US Treasury yields.

Investors are looking for safety with the US presidential election around the corner and recent polls showing a close race between the two candidates Vice President Kamala Harris and former President Donald Trump.

Beyond that, US Treasury yields pulled back after JOLTS Job Openings data declined by more than expected in September. The Federal Reserve (Fed) has set the labor market as the main focus of its monetary policy, and these figures have practically confirmed a 25 bps rate cut next week.