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Gold at record high as global political uncertainty boosts safe-haven demand
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ScrapPrices
Published on October 30,2024 08:00 AM Metals
Gold prices rose to a record high on Wednesday as uncertainty over the U.S. presidential election boosted safe-haven demand, with traders also awaiting economic data for cues on the Federal Reserve's policy path.

Oct 30 (Reuters) - Gold prices rose to a record high on Wednesday as uncertainty over the U.S. presidential election boosted safe-haven demand, with traders also awaiting economic data for cues on the Federal Reserve's policy path.

Spot gold rose 0.1% to $2,777.00 per ounce by 9:55 a.m. ET (1355 GMT), after reaching an all-time high of $2,789.73 earlier in the session. U.S. gold futures gained 0.3% to $2,789.20.

"We have elections coming up, the political climate here is just very uncertain, the Fed is cutting interest rates, prospects of Russia, Ukraine," said Daniel Pavilonis, senior market strategist at RJO Futures.

"There's just so much out there to push gold higher, and all the negative news out there is what gold is really looking for. The next step higher is probably $2,850," Pavilonis said.

The U.S. Presidential election season is reaching its climax on Nov. 5, with tight polling between Republican former President Donald Trump and Democratic Vice President Kamala Harris.

Gold, traditionally a hedge during geopolitical instability, has surged 35% this year, on course for its best annual performance since 1979. Low interest rates have further supported the rally.

Gold may reach $3,000 by 2025 amid emerging market concerns, gold ETF inflows, and post-election market adjustments, said Dominik Sperzel, head of trading at Heraeus Metals Germany.

Meanwhile, data showed U.S. private payrolls growth surged by a higher-than-expected 233,000 jobs in October, despite fears of temporary disruptions from hurricanes and strikes. The U.S. gross domestic product increased at a 2.8% annualized rate.

Fed policymakers are expected to cut rates by a quarter-point next week. Markets are also focused on U.S. Personal Consumption Expenditures and payrolls data, due Thursday and Friday.

Palladium dropped over 5% to $1,148.75 per ounce after reaching a 10-month high on Tuesday. The short-covering rally triggered by news on potential Russian sanctions has run its course, Saxo Bank's Ole Hansen said.

Spot silver lost 2.1% to $33.71 per ounce, and platinum slid 2.8% to $1,014.62.

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