Gold prices have once again shattered their all-time high, driven by uncertainties surrounding the U.S. presidential election and ongoing conflicts in the Middle East.
On Monday, spot gold prices increased by 0.9%, reaching $2,771.70 per ounce and surpassing last week’s all-time high before stabilizing at $2,763.24 per ounce.
U.S. gold futures rose, hitting $2,784 per ounce on the New York Commodity Exchange (COMEX) before closing at $2,776 per ounce.
This marks a year-to-date increase of approximately 34% for gold. Analysts note that this upward trend occurred even amid higher bond yields and a strong U.S. dollar, both of which typically dampen gold prices.
With the U.S. election only a week away and heightened instability in the Middle East, the demand for gold as a safe-haven asset has surged.
Saxo Bank A/S reported that gold prices rose this week despite falling risk premiums in other areas. Attention was shifting toward the U.S. election, especially the possibility of a Trump 2.0 outcome, which could increase policy uncertainty, trade tariffs, and elevated geopolitical risks.
Some analysts attribute the surge in gold prices to recent U.S. economic indicators. According to the U.S. Department of Labor’s Job Openings and Labor Turnover Survey (JOLTS), job openings in September totaled 7.44 million, down 420,000 from the previous month and marking the lowest level since January 2021.
Meanwhile, the U.S. consumer confidence index rose to 108.7 (1985=100) in October, a 9.5-point increase from September’s 99.2, reaching its highest since January.
Investors are also awaiting further data releases later this week to gauge the Federal Reserve’s stance on interest rates. The market currently sees a nearly 100% probability of a rate cut by the Fed in November.
Han Tan, chief market analyst at Exinity Group, predicted that as long as U.S. election risks weigh on market sentiment and expectations for Fed rate cuts persist, gold will maintain its upward bias and may surpass $2,800 in the coming days.
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