Gold Reaches Record High as Geopolitics Drive Traders to Safety
Gold hit a fresh record due to sustained haven demand, with investors focused on the approaching US election and conflict in the Middle East.
Bullion climbed to $2,758.49 on Wednesday — more than $9 higher than Tuesday’s peak — before paring those gains.
Geopolitical risks have taken center stage amid the tight US presidential race and concerns that conflicts between Israel and Iran may escalate into a broader war. Bullish sentiment has also spilled over to the wider precious metals complex, with silver within striking distance of $35 an ounce, which it last reached in 2012.
The flight to safety has helped offset pressure from a selloff in US government bonds in recent days, as traders bet on a slower pace of easing by the Federal Reserve. Normally, higher yields and tight monetary policy settings tend to weigh on the precious metal, as it doesn’t pay interest.
Spot gold was little changed at $2,751.04 an ounce as of 11:18 a.m. in London. The Bloomberg Dollar Spot Index edged up. Silver and palladium slipped, while platinum rose.
Source: Bloomberg
