Gold prices increased on Thursday, driven by safe-haven demand that offset the impact of a firmer dollar. Meanwhile, palladium reached a peak not seen in over a month.
By 0143 GMT, spot gold rose by 0.3% to $2,725.51 per ounce. Prices had previously reached a record high of $2,758.37 on Wednesday, fueled by U.S. election uncertainties and rising tensions in the Middle East.
U.S. gold futures also saw a 0.3% increase, reaching $2,738.50.
The U.S. dollar remained near a three-month high, which limited gold’s potential for further gains. A stronger dollar makes gold more expensive for holders of other currencies.
The upcoming U.S. presidential elections on Nov. 5 have intensified competition between Vice President Kamala Harris and Republican candidate Donald Trump. Additionally, Israeli airstrikes targeted Beirut’s southern suburbs, and Hezbollah claimed to have fired precision-guided missiles at Israeli positions for the first time.
Looking ahead, Sugandha Sachdeva, founder of SS WealthStreet in New Delhi, projected potential gold prices could reach $2,800 by the end of 2024, with targets exceeding $3,000 in 2025. This outlook is based on ongoing geopolitical risks, expected U.S. monetary easing, and central bank purchases.
U.S. economic activity showed steady growth from September to early October, with a slight increase in hiring. This suggests a possible 25-basis-point rate cut by the Federal Reserve in the near future, which would reduce the opportunity cost of holding non-yielding gold.
Sachdeva noted that factors such as the Fed‘s monetary easing, Chinese stimulus measures, and supply constraints are expected to push silver prices higher, potentially reaching around $45 by 2025. Spot silver rose by 0.4% to $33.84 per ounce.
Palladium experienced a significant jump of 4%, reaching $1,100.50—the highest level since September 18. Reports indicated that the U.S. is urging Group of Seven allies to consider sanctions on Russian palladium and titanium, as Russia’s Nornickel is the world’s largest producer of palladium.
Platinum prices also increased by 1%, reaching $1,025.85.
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- Gold Prices Rise by Rs 10, Silver Up by Rs 100
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- Gold Hits Record High as Geopolitical Tensions Drive Investors to Safety
