Gold Hits Fresh Record on Mideast Fears and Election Uncertainty
Gold extended its rally to a fresh record high, amid tensions in the Middle East and as traders looked toward the US presidential election.
Bullion rose as much as 0.6% — having breached the $2,700-an-ounce threshold on Friday — with analysts attributing gains to haven demand amid uncertainty around the outcome of the US election and ongoing worries over the Middle East. Israel has been discussing its attack on Iran after a Hezbollah drone exploded near Prime Minister Benjamin Netanyahu’s private home at the weekend.
Fellow precious metal silver has also advanced, climbing as much as 1.2% on Monday to the highest since 2012.
Gold is being helped by “growing concerns about a rising US debt pile,” and the price momentum is also supporting technical buying by short-term focused traders, said Ole Hansen, head of commodity strategy at Saxo Bank A/S.
Spot gold rose 0.5% to $2,734.33 an ounce at 1 p.m. in London. The Bloomberg Dollar Spot Index and US 10-year Treasury yield also gained. Palladium fell, while platinum and silver increased.
Source: Bloomberg
