Gold prices climbed toward record levels as traders prepared for crucial economic data that will influence the upcoming Federal Reserve policy decision, coinciding with the ongoing countdown to the US presidential election. The precious metal rose above $2,756 an ounce as investors anticipated upcoming reports on inflation and payrolls. These reports are expected to reveal underlying economic resilience, despite potential job growth disruptions caused by two recent hurricanes. Economists largely predict that the Federal Reserve will implement a quarter-point rate cut during its meeting on November 6-7. Generally, lower borrowing costs are seen as unfavorable for non-yielding assets like gold.
So far this year, gold has experienced a remarkable surge of about 33%, recently achieving a record high just shy of $2,760 last week, driven by increased central bank purchases and sustained safe-haven demand. As the presidential race between Kamala Harris and Donald Trump remains tightly contested, gold has managed to secure three consecutive weeks of gains, even amid rising Treasury yields—a development that can often exert pressure on the metal’s price.
Hedge funds have been actively involved in boosting gold’s standing, increasing their net-long positions, while investors have been adding to their holdings in exchange-traded funds (ETFs) linked to gold.
As of 10:32 a.m. in Singapore, spot gold was trading 0.5% higher at $2,756.45 an ounce. The Bloomberg Dollar Spot Index remained steady during this period. Silver also saw a rise of over 1%, surpassing $34 an ounce, while both palladium and platinum prices advanced as well.
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