Gold logged another record high on Tuesday as uncertainties surrounding the US presidential election and the Middle East conflict kept bullion’s appeal high.
Spot prices rose as much as 0.9% to $2,771.70 an ounce, topping the all-time high set last week, before settling back at 2,763.24 an ounce by noon EDT.
US gold futures gained 0.7% at $2,776.00 an ounce in New York, after touching $2,784.00 earlier in the morning.
The rally comes despite rising bond yields and a stronger US dollar, which usually would have weighed on the precious metal. This brings bullion’s year-to-date gain to approximately 34%, making it one of the best-performing assets of 2024.
“Gold trades up on the week, despite deflating risk premiums elsewhere, confirming the focus remains the US election and especially the prospect of a Trump 2.0,” Saxo Bank A/S said in a note to Bloomberg.
“It may bring greater policy disruption, trade tariffs and increased geopolitical risks.”
Gold’s rally also follows new economic data released Tuesday that showed US job openings fell far more than expected while consumer confidence rose above all estimates. Investors now await more data later this week to further gauge the Federal Reserve’s stance on interest rates.
Markets are currently pricing in an almost 100% chance for a 25-basis-point rate cut by the US central bank in November.
“Gold should retain its upward bias and may even flirt with $2,800 in the days ahead, as long as US election risks continue weighing on market sentiment, while Fed rate cut expectations remain intact,” said Han Tan, chief market analyst at Exinity Group.
