09:36 AM EST, 11/04/2024 (MT Newswires) -- Gold edged higher early as traders turn cautious with the dollar and yields falling ahead of tomorrow's U.S. presidential election and this week's interest-rate decision from the Federal Reserve.

Gold for December delivery was last seen up US$5.90 to US$2,755.10 per ounce.

The rise comes ahead of Tuesday's U.S. election, with polls showing a tight race between Donald Trump and Kamala Harris, as the two candidates offer much different economic policies. Harris is expected to continue much of the Biden Administration's policies while Trump plans blanket tariffs on imports. A Democratic victory could be met with claims of cheating and political unrest that prompt safe-haven buying.

"In the event of a contested election outcome and a more drawn-out process, there is an upside risk for gold prices versus our forecast, especially in the short term. We'd think of this more along the lines of gold's crisis performance and immediate upwards bias in times of uncertainty," Christopher Louney, a commodities strategist at RBC Capital Markets, noted.

The Federal Reserve's policy committee will release its latest interest-rate decision on Thursday, with the group widely expected to follow its prior 50 basis point cut with a 25 basis point drop in rates.

"Gold remained steady ... as investors assess safe-haven demand and the Fed's policy outlook ahead of the election," Saxo Bank wrote.

The dollar was lower ahead of the vote, with the ICE dollar index last seen down 0.61 points to 103.67.

Treasury yields were sharply lower, with the U.S. two-year note last seen paying 4.143%, down 8.1 basis points, while the yield on the 10-year note was down 12.0 basis points to 4.28%