Gold prices saw a slight increase in Asian trading on Monday, driven by safe-haven demand following U.S. President Joe Biden’s decision to end his reelection bid and endorse Vice President Kamala Harris as his successor.
Spot gold rose by 0.2% to $2,405.02 per ounce, while August gold futures fell by 0.3% to $2,406.50 per ounce as of 00:53 ET (04:53 GMT). The yellow metal remained close to the record highs of $2,475.02 per ounce reached last week, fueled by growing speculation that the Federal Reserve may begin cutting interest rates in September.
Political uncertainty in the U.S. also contributed to gold’s appeal as a safe-haven asset. Biden’s announcement over the weekend intensified market speculation about the U.S. political landscape. Although Harris has been endorsed by Biden and prominent Democrats, she still requires formal nomination at the party convention in August.
Former President Donald Trump, who was nominated as the Republican frontrunner last week, currently holds a slight edge over both Biden and Harris in CBS polling data. Analysts suggest that a potential Trump presidency could lead to higher long-term inflation, especially if his administration implements more protectionist trade policies.
Uncertainty surrounding the U.S. election has increased following Biden’s announcement, with Democratic donor contributions surging past $50 million in response. The weakening of the U.S. dollar provided additional relief to metal markets.
In other precious metals, platinum futures fell 0.1% to $972.80 per ounce, while silver futures remained steady around $29.29 per ounce.
