Gold trades above $1,700 amid weaker dollar as election looms

Dollar continues to rise, given renewed demand for safe-haven assets and currency weakening. This is due to the U.S. midterm election results.

Investing.com reported that the recent rally in metal markets has contributed to the dollar's weakness. 

Gold rose strongly this week. The reason is unclear election outlook in the U.S. Congress, leading to the yellow metal's purchase as a safe haven asset. Experts’ estimates on the election outcome remain vague. Options range between a Democratic re-election or a Republican takeover. So, outcomes may foreshadow a monetary shift.

Speculation about less aggressive rate hikes by the Federal Reserve (Fed) in December is also putting pressure on the dollar. Some representatives expressed support for monetary easing. Markets anticipate that the central bank is likely to raise the rate by 50 basis points during its next meeting. This is 60% lower than the previous hike of 75 basis points that took place in November. 

The U.S. consumer inflation statistics are scheduled for Thursday, November 10. Inflation is projected to remain high, having a direct impact on the Fed's tightening cycle.