Gold prices experienced a slight decline during Asian trading on Friday, yet they remain close to the record highs achieved earlier this week. Traders are maintaining a bias toward safe-haven assets amid concerns over the upcoming U.S. presidential election.
Despite reaching new highs, gold struggled to sustain those levels due to a stronger dollar and rising Treasury yields. However, it is on track for mild weekly gains, marking its third consecutive week of increases.
Safe-haven demand is further bolstered by ongoing geopolitical tensions in the Middle East.
Spot gold fell 0.4% to $2,724.55 per ounce, while December gold futures dropped 0.4% to $2,737.05 per ounce by 00:30 ET (04:30 GMT). Spot gold is set to rise about 0.2% this week, following a record high of $2,758.53 per ounce.
The uncertainty surrounding the U.S. election, with less than two weeks until the vote, is driving demand for gold. Recent polls and prediction markets suggest that Republican nominee Donald Trump may have an advantage over Vice President Kamala Harris.
However, the race remains too close to call, keeping market sentiment cautious and fueling gold demand.
Increased tensions in the Middle East have also dampened risk appetite. Israel has issued strong statements against Iran this week, raising concerns about a potential retaliatory strike over an attack in early October. Analysts are particularly worried that Israel may target Iran’s oil and nuclear facilities, which could escalate the conflict significantly.
The ongoing conflict between Israel and Hamas, along with Hezbollah, shows little sign of de-escalation, despite ongoing U.S. efforts to mediate peace.
Other precious metals saw declines on Friday. Platinum futures dropped 1.5% to $1,022.95 per ounce, remaining flat for the week. Silver futures fell 0.5% to $33.635 per ounce but are still up 1.2% for the week.
In the industrial metals sector, copper prices also fell on Friday, heading for a fourth consecutive week of losses. This decline is attributed to a stronger dollar and uncertainties regarding Chinese stimulus measures.
Benchmark copper futures on the London Metal Exchange fell 0.3% to $9,535.50 per ton, while December copper futures decreased by 0.5% to $4.3457 per pound. Both contracts are down about 1% this week.
A meeting of China’s National People’s Congress, initially scheduled for late October, has been delayed to November, leaving traders seeking further details on fiscal stimulus. Although China, the world’s largest copper importer, has announced significant stimulus measures recently, they have yet to improve market sentiment as traders await more specifics on the timing and scale of these initiatives.
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