Markets were once again rocked by a drastic jump in gold prices as investors braced for the release of US inflation data on Thursday.
Opening the Asian session, the yellow metal was trading higher at around $1,708 an ounce, while gold futures were slightly higher at $1,710 an ounce.
Gold traded up more than 2% in the previous session, which saw it hit a one-month high of $1,716 an ounce.
This can be seen in the price movement of the gold metal pair chart against the US dollar which jumped around 500 pips in the New York session.
This strengthening comes on the heels of continued weakness in the US dollar, which has slumped to a one-month low against its main rival.
Moreover, it is also linked to the US mid-term elections, where Americans have cast their final votes on Tuesday.
With the result expected to be known in a few days, it is said to have an impact on the US dollar if President Joe Biden's Democratic Party is unable to maintain control of both the House of Representatives and the Senate.
Meanwhile, investors remain cautious ahead of the release of US inflation data which is expected to decline to 6.5% year-on-year in October.
