Gold surged to a new record on Thursday, as traders kept a close eye on upcoming US economic data and an increasingly tight presidential race. The precious metal rose by as much as 0.5%, reaching $2,685.74 per ounce, surpassing last month’s peak by only a few cents. Since the beginning of the week, gold has climbed around 1%, as investors adjust their portfolios ahead of the US election, which is less than three weeks away.
The 2024 presidential election is seen as a key factor driving demand for safe-haven assets like gold. With both Donald Trump and Kamala Harris representing different economic risks, analysts predict that gold could maintain its upward trend regardless of who wins.
Traders are also focusing on upcoming US retail sales and jobless claims data, which may offer insights into the Federal Reserve’s monetary policy moves this year. Initial unemployment claims for the week ending October 12 are expected to remain elevated, while consumer spending is projected to show moderate growth for September, according to Bloomberg Economics. Lower interest rates typically benefit gold, which does not generate interest income.
Gold has been one of the best-performing commodities in 2024, with prices up 30% year-to-date. Optimism around Federal Reserve rate cuts has fueled the latest rally, following the central bank’s decision to begin an easing cycle last month. However, recent mixed economic data has tempered expectations on the extent of rate cuts this year. Additionally, strong central bank gold purchases and rising geopolitical tensions have supported the metal’s gains.
As of 7:49 a.m. in London, spot gold was trading 0.4% higher at $2,683.63 per ounce. Meanwhile, the Bloomberg Dollar Spot Index remained steady after three consecutive days of gains. Among other precious metals, silver and palladium experienced slight declines, while platinum recorded an increase.
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