Gold prices rose to record highs on Thursday, heading for their best month in 7 months, driven by safe-haven demand ahead of the US presidential election. SA scheduled for November 5, 2024. While investors are waiting for the inflation report to get signals about the path of interest rates from the Federal Reserve.
The spot gold price settled at $2,783.20 per ounce, starting at 07:41 (GMT), after hitting a record high of $2,790.15 earlier in the session. Prices have risen about 6 percent since the beginning of the month, according to Reuters.
As for US gold futures, they fell 0.3 percent to reach $2,793.60.
The US elections are entering their decisive phase, as opinion polls show a strong rapprochement between former US Republican President Donald Trump and Democratic Vice President Kamala Harris.
Financial markets analyst at Capital.com, Kyle Rodda, described the rise in gold prices as “similar to the Trump deals, or a real hedge against more spending in the largest deficit in the United States.”
Gold is considered a safe investment in times of economic and geopolitical uncertainty, and thrives in a low interest rate environment.
Investors are also awaiting key US personal consumption expenditure data, which is expected to be released later today. The main price index of personal consumer spending for last September is expected to rise 0.3 percent after gains in the previous August, which amounted to 0.1 percent.
Matt Simpson, chief analyst at City Index, said: “Traders appear to be interested in buying gold regardless of market direction, which has kept price declines limited. If personal consumption expenditure inflation comes in at 0.2 percent or less per month, the trend could continue.”
Attention is also turning to the weekly unemployment claims data in the United States, which is expected to be released later today, as well as the payroll report due out on Friday. Traders are expecting a 96 percent chance the Federal Reserve will cut interest rates by a quarter of a percentage point next week.
While spot silver fell 0.3 percent to $33.69 an ounce, platinum settled at $1,008.95, and palladium fell 0.3 percent to $1,143.50, all three metals were on track to post monthly gains.
An official survey of factories showed that manufacturing activity in China, the biggest consumer of gold, expanded in October for the first time in 6 months, which supports policymakers’ hopes about the effectiveness of the stimulus new economic.
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2024-10-31 09:40:00
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