Gold scales record peak as US election jitters fuel safe-haven rush
Shafaq News/ Gold hit an all-time peak on Wednesday as investors flocked towards the safe-haven metal with less than a week left for the U.S. presidential election, while they also awaited economic data for clues on the Federal Reserve's rate stance.
Spot gold rose 0.3% to $2,783.72 per ounce, as of 0545 GMT, after hitting an all-time high of $2,783.96 earlier in the session.
U.S. gold futures rose 0.5% to $2,795.60.
"Gold is very much being anchored on the U.S. election outcome ... In the near term, spot gold will face resistance at $2,800, then followed by $2,826," said Kelvin Wong, OANDA senior market analyst for Asia Pacific.
The Nov. 5 election has entered its final stretch, with recent polls indicating a fiercely competitive race between Donald Trump and Kamala Harris.
Another contributor to gold's record rally is expectations of additional U.S. interest rate cuts. Lower rates reduce the opportunity cost of holding zero-yield bullion.
Fed policymakers are nearly certain to deliver a quarter-point reduction in short-term borrowing costs next week, as a U.S. Labor Department report showed job openings dropped in September to their lowest level since January 2021.
"If we see hot inflation numbers or a strong jobs report, then there could be a derailment in gold prices," Wong added.
Other major data due this week include the ADP employment report at 1215 GMT on Wednesday, U.S. Personal Consumption Expenditures (PCE) on Thursday and Friday's payrolls report.
Goldman Sachs lowered its gold forecast from $3,080 to $3,000 by December 2025, but maintained its bullish stance. It also anticipates a 7% upside from Western exchange-traded fund (ETF) holdings.
On the retail front, Indian gold buyers overlooked record high prices and made purchases for the Dhanteras and Diwali festivals that started on Tuesday, according to industry officials.
Spot silver shed 0.6% to $34.25 per ounce.
Palladium fell over 2% to $1,197.75 per ounce, while platinum rose 0.3% to $1,048.85.
Stronger demand and the risk of supply disruption are expected to drive platinum and palladium prices higher in 2025 from this year's averages, a Reuters poll showed.
(REUTERS)
