Pound ( GBPUSD=X )

The British pound traded higher against the US dollar, up by 0.2% to $1.2974, as markets prepared for the start of the US presidential election. With the election set to kick off in the North American session, investors will focus on any developments in the race between vice president Kamala Harris and former president Donald Trump .

The US Dollar Index (DXY), which tracks the greenback against a basket of major currencies, stabilised following a sharp sell-off on Monday. The decline came after a Des Moines Register/Mediacom poll indicated that Harris leads Trump by three percentage points in Iowa — a key battleground state where Trump triumphed in 2016 and 2020.

Read more: Stocks to watch if Donald Trump wins the US election

The pound is also benefiting from expectations surrounding the Bank of England ’s (BoE) upcoming policy meeting on Thursday. Markets anticipate that the BoE will cut interest rates by 25 basis points to 4.75%.

Against the euro ( GBPEUR=X ), sterling was slightly higher, trading at €1.1914.

Gold ( GC=F )

Gold prices remained steady in early European trade on Tuesday, after recent losses as traders awaited developments surrounding the US presidential election and an impending Federal Reserve meeting.

Spot gold was muted at $2,735.00 per ounce, while US gold futures slipped 0.1% to $2,742.30.

Despite the muted performance, analysts have forecasted potential gains for gold, with some projecting that prices could rise to $2,800 by year-end and even reach $3,000 in 2025. UBS attributed the outlook to a number of factors, including the Fed's ongoing rate-cutting cycle, a weakening US dollar, and ongoing geopolitical risks.

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"Meanwhile, many central banks continued to buy gold, which has buoyed investor sentiment. Overall market positions remain low, providing significant room for increased holdings, and institutional investors' willingness to buy gold is increasing," Sharon Ding, head of China basic materials at UBS, told China Daily .

Oil ( BZ=F )

Oil markets saw a modest uptick in early European trading, stabilising after a recent surge in prices. Traders are now looking for further guidance from both the US presidential election and a significant political gathering in China.

Brent crude futures rose by 0.2%, trading at $75.23 per barrel, while US West Texas Intermediate ( CL=F ) gained 0.3%, reaching $71.67 per barrel during early European trading.

The price action comes amid anticipation of stimulus measures from China, where the Standing Committee of the National People's Congress (NPC) began a four-day session on Monday. The NPC is expected to approve additional fiscal spending, particularly after Beijing unveiled a series of fiscal policies aimed at supporting economic growth.