Gold Marches to Record as U.S. Election Jitters Fuel Safe-Haven Rush
Gold hit an all-time peak on Wednesday as investors flocked towards the safe-haven metal less than a week before the U.S. presidential election, while they awaited economic data for clues on the Federal Reserve’s rate stance.
Spot gold was up 0.2% to its all time high at $2,785.45 per ounce.
U.S. gold futures rose 0.4% to $2,794.90.
“Gold is very much being anchored on the U.S. election outcome ... In the near term, spot gold will face resistance at $2,800, then followed by $2,826,” said Kelvin Wong, OANDA senior market analyst for Asia Pacific.
The Nov. 5 election has entered its final stretch, with recent polls indicating a fiercely competitive race between Donald Trump and Kamala Harris.
Another contributor to gold’s record rally is expectations of additional U.S. interest rate cuts. Lower rates reduce the opportunity cost of holding zero-yield bullion.
Fed policymakers are nearly certain to deliver a quarter-point reduction in short-term borrowing costs next week, as a U.S. Labor Department report showed job openings dropped in September to their lowest level since January 2021.
Source : Reuters
