2020.11.0218:20:00UTC+00Gold Futures Settle Higher On Safe-haven Appeal

Gold prices moved higher on Tuesday as worries about rising coronavirus cases and fresh lockdown restrictions in several places across Europe lifted demand for the safe-haven commodity.

Uncertainty about the outcome of the US presidential election contributed as well to gold's uptick. Traders were also looking ahead to the upcoming Federal Reserve meeting and monthly U.S. jobs data, due on Thursday and Friday, respectively.

The dollar's gains limited the yellow metal's upside. The dollar index, which was down in the red at 93.89 early on in the day, recovered subsequently and was last seen at 94.20, up 0.17% from previous close.

Gold futures settled at $1,892.50 an ounce, gaining $12.60 or about 0.7%.

Silver futures for December ended up $0.387 at $24.033 an ounce, while Copper futures for December settled at $3.0770, up $0.0295 from previous close.

According to exit polls, Democratic nominee Joe Biden is enjoying a large lead in key states, but races are reportedly tight in battleground states.

On the virus front, Europe's total coronavirus cases crossed the 10 million mark on Sunday, forcing governments across the continent to reimpose fresh lockdown measures.

British Prime Minister Boris Johnson announced over the weekend that a one-month lockdown across England would start on Thursday to contain the spread of the coronavirus.

France, Belgium and Germany have also announced lockdowns at several places.

In economic news, a report released by the Institute For Supply Management said the ISM purchasing managers index climbed to 59.3 in October from 55.4 in September, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 55.8.

Meanwhile, construction spending in the U.S. increased by less than expected in the month of September, the Commerce Department revealed in a report released today.

The report said construction spending rose by 0.3% to an annual rate of $1.414 trillion in September after climbing by 0.8% to $1.410 trillion in August. Economists had expected construction spending to jump by 1%.