Gold Rises to Record High as Looming US Election Fans Demand
Gold rose to a record on Wednesday on haven demand ahead of the US election, and as traders waited for economic data that may give clues on the Federal Reserve’s rate path.
Bullion climbed as high as $2,789.86 an ounce, topping the previous record posted on Tuesday. A Bloomberg gauge of the dollar snapped a three-day advance ahead of US GDP figures due later Wednesday. A weak reading may support the case for deeper rate cuts, with Fed policymakers to meet on Nov. 6-7. Lower borrowing costs are typically beneficial for the precious metal that doesn’t offer any interest.
Global gold demand swelled about 5% in the third quarter, setting a record for the period and lifting consumption above $100 billion for the first time, according to the World Gold Council. The increase — which saw volumes climb to 1,313 tons — was underpinned by stronger investment flows from the West, including more high-net-worth individuals.
Spot gold rose 0.5% to $2,787.67 an ounce as of 7:05 a.m. in London. The Bloomberg Dollar Spot Index was down 0.1%. Silver palladium and platinum all declined.
Traders will be scrutinizing US inflation and payroll figures at the end of the week for further clues on the Fed’s easing trajectory into 2025. The reports are forecast to show underlying resilience in the economy and a hiccup in the labor market after two hurricanes. Economists expect policymakers to cut rates by a quarter percentage point next week.
Source: Bloomberg
