Gold prices increased during Asian trading on Wednesday, approaching record highs as uncertainty surrounding the 2024 U.S. presidential election heightened following a contentious debate between Vice President Kamala Harris and former President Donald Trump.
Spot gold advanced by 0.1% to $2,519.73 per ounce, while December gold futures climbed 0.2% to $2,548.45 per ounce by 00:19 ET (04:19 GMT). The uptick in gold prices came alongside a retreat in the U.S. dollar, which fell in the wake of the heated debate and a drop in U.S. stock index futures, signaling diminished risk appetite.
Debate Sparks Uncertainty
The presidential debate on Tuesday night saw both candidates engage in vigorous attacks on each other’s policies and personas, intensifying speculation about a fiercely contested election. This uncertainty spurred demand for safe havens like gold and the Japanese yen. Spot gold prices traded just below their record high of $2,532.05 per ounce following the debate.
Awaiting U.S. CPI Data
Investors are also on edge ahead of the U.S. Consumer Price Index (CPI) report due later on Wednesday. The data is expected to show a further cooling in inflation, potentially encouraging the Federal Reserve to begin reducing interest rates. The Fed‘s next meeting is just a week away, where a rate cut of at least 25 basis points is anticipated. However, recent signs of economic resilience in the U.S. have led traders to temper expectations for a more substantial 50 basis point cut, which had unsettled global markets in recent days.
Precious Metals and Industrial Metals
Other precious metals also saw gains on Wednesday. Platinum futures increased by 0.1% to $945.50 per ounce, while silver futures rose 0.6% to $28.777 per ounce. Both metals had lagged behind gold in recent months but are now catching up.
In the industrial metals sector, copper prices advanced as they partially recovered from recent losses. Benchmark copper futures on the London Metal Exchange climbed 0.7% to $9,086.00 per ton, and one-month copper futures rose 0.6% to $4.1285 per pound. Despite the uptick, concerns about slowing copper demand in China and potential trade tensions between China and the West continue to weigh on market sentiment. U.S. lawmakers are preparing new restrictions on Chinese industries, which could exacerbate trade tensions and impact global markets, particularly after recent heavy import duties on Chinese electric vehicles.
