Gold (GC=F) surged to an all-time high as traders keep a close eye on the tightening US presidential race and upcoming economic data. The precious metal rose by 0.5%, reaching $2,687.67 an ounce, surpassing last month’s peak. With a 1.1% increase this week, investors are adjusting their portfolios ahead of the November 5 election, recognizing the economic risks posed by both candidates. Regardless of whether Donald Trump or Vice President Kamala Harris prevails, gold is expected to receive ongoing support.
Market attention is now directed toward US retail sales and jobless claims, which may provide insights into the Federal Reserve’s easing strategy for the year. Initial unemployment claims are anticipated to remain high for the week ending October 12, while consumer spending is expected to show modest growth in September, according to Bloomberg Economics.
Lower interest rates typically boost demand for non-yielding assets like gold. This year, gold has seen a remarkable 30% increase, making it one of the top-performing commodities. Recent gains have been driven by optimism surrounding rate cuts as the Fed initiated its easing cycle last month, although traders have recently tempered their expectations regarding the extent of these cuts following mixed economic signals.
Strong demand from central banks and rising geopolitical tensions have further bolstered gold prices. As of 11:31 a.m. in London, spot gold was trading 0.5% higher at $2,686.56 an ounce. The Bloomberg Dollar Spot Index remained stable after three consecutive days of gains, while silver, palladium, and platinum also saw slight increases.
hii Aditi Sahu this side..
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