Gold Hits Record Highs on US Election Uncertainty, More Policy Easing
Gold prices hit record highs on Thursday as uncertainty surrounding the U.S. presidential elections and the war in the Middle East prompted investors to seek out the safe-haven asset, while easing monetary policy environment kept prices elevated.
Spot gold rose 0.7% to $2,690.60 per ounce by 1:42 p.m. ET (1742 GMT). U.S. gold futures settled 0.6% higher at $2,707.5.
Gold has seen a surge of over 30% this year, surpassing record levels, driven by prospects of further Federal Reserve rate cuts after a half percentage point rate cut last month and ongoing geopolitical uncertainties.
"On top of the concerns in the Middle East, you are also nearing the U.S. election, which is looking like a very closely contested election. And that generates a whole host of uncertainty, and gold often is the place to go in times of uncertainty," Nitesh Shah, commodity strategist at WisdomTree, said.
Gold prices are expected to rise to $2,941 a troy ounce over the next 12 months, delegates to the London Bullion Market Association's annual gathering predicted earlier this week.
Source : Reuters
