Gold Rallies to Record With Tight US Election and Data in Focus
Gold climbed to a record ahead of US data prints due later Thursday, with traders also monitoring an increasingly tight presidential race that’s driven demand for haven assets.
Bullion climbed as much as 0.5% to hit $2,687.67 an ounce, topping last month’s peak. The precious metal is up 1.1% this week, with investors repositioning portfolios ahead of the US election on Nov. 5. With both candidates posing different risks to the economy, gold likely will see further support — no matter whether Donald Trump or Vice President Kamala Harris wins.
The market’s focus is now shifting to incoming US retail sales and jobless figures for further clues on the pace of Federal Reserve easing this year. Initial unemployment claims likely remained elevated in the week ended Oct. 12, while consumer spending probably grew moderately in September, according to Bloomberg Economics.
Lower rates tend to benefit non-interest bearing bullion.
The precious metal — up 30% this year — is one of the strongest performing commodities. Rate-cut optimism fueled the most recent gains as the Fed kicked off its easing cycle last month, though traders have in recent weeks pared expectations on the size and scope of this year’s rate cuts following mixed reports on the US economy.
Strong central bank purchases and heightened geopolitical tensions have also supported gold.
Spot gold was 0.5% higher at $2,686.56 an ounce at 11:31 a.m. in London. The Bloomberg Dollar Spot Index was flat following three consecutive gains. Silver, palladium and platinum all edged higher.
Source : Bloomberg
