Gold Climbs to Fresh Record With Focus on US Election and Data
Gold climbed toward another fresh record as traders await the latest US economic data and the presidential election, now just a week away.
Bullion rose as much as 0.9% to $2,766.73 an ounce, topping the all-time high set last week. Its strength came despite rising bond yields and a strong US dollar, which would have weighed on the precious metal. Lower rates and a softer greenback typically benefit gold as it pays no interest and is priced in the US currency.
Bullion also edged higher after economic data released Tuesday showed US job openings fell far more than expected while consumer confidence rose above all estimates. Traders will scrutinize a slew of US data due later this week, with inflation and payroll figures potentially offering clues on the pace of Federal Reserve rate cuts. Recent data points to the resilience of the US economy, keeping the debate alive on how deep the Fed may cut rates for the rest of the year.
Gold has surged by more than a third this year, supported by central-bank buying and haven demand amid conflicts in the Middle East and Ukraine. The tight US presidential election between Kamala Harris and Donald Trump is also creating uncertainty that’s underscoring bullion’s role as a place of safety for investors.
The market is also preparing for gold miners’ earnings reports including No. 3 producer Agnico Eagle Mines Ltd., which discloses results after markets close on Wednesday.
Spot gold was 0.8% higher at $2,763.71 an ounce at 10:09 a.m. in New York. The Bloomberg Dollar Spot Index edged higher, while the US 10-year Treasury yield gained. Palladium, platinum and silver all advanced.
Source: Bloomberg
