Gold remains stable as the market awaits the outcome of the US elections

Gold prices remained steady on Wednesday as investors eagerly awaited the outcome of the hotly contested US presidential election campaign.

Find gold held at $2,740.61 an ounce. Gold prices hit a record high of $2,790.15 last Thursday.

US gold futures was slightly lower at $2,749.10 per ounce.

Republican Donald Trump won 14 states in Tuesday's US presidential election, while Democrat Kamala Harris captured four states and Washington, DC, Edison Research predicted, but critical elections were unlikely in the next few hours or even days would come to the states.

This week is 95% about the U.S. election, with a 5% stake from the Federal Reserve to add some spice, said Kyle Rodda, financial markets analyst at Capital.com.

“Gold is part of the Trump trade and should benefit in the long term from a Trump victory, primarily due to the impact of huge deficit spending, but also due to potentially more uncertain U.S. foreign policy,” Rodda said.

Traders are also awaiting the Fed's two-day policy meeting, which ends Thursday, as well as Chairman Jerome Powell's remarks for further guidance.

Markets widely expect the Fed to announce a quarter-point rate cut this week, following its September cut.

“While markets expect a 25 basis point rate cut this week, the Fed could avoid a dovish tone due to the inflationary impact of Trump's policies,” said Matt Simpson, senior analyst at City Index.

Gold is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low interest rate environment.

The U.S. trade deficit rose to its highest level in nearly two and a half years in September, data released Tuesday showed.

Elsewhere, Perth Mint reported a decline in gold sales in October, while silver sales fell to their lowest level in four months.