Gold touches record peak on US election jitters, Middle East woes

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At least 93 Palestinians killed or missing in Israeli strike in Gaza
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Race to White House remains tight, opinion poll shows
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Traders see 98% chance of a 25-bps US rate cut in Nov
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Palladium hits 10-month high
By Anjana Anil and Anushree Mukherjee
Oct 29 – Gold prices hit a record high on Tuesday, as uncertainties surrounding the U.S. presidential election and the Middle East conflict, along with expectations of an interest rate cut by the Federal Reserve, boosted bullion’s appeal.
Spot gold was up 1% at $2,769.25 per ounce as of 10:17 a.m ET , after hitting a record high of $2,772.42 earlier in the session.
U.S. gold futures settled 0.9% higher at $2,781.1.
Bullion thrives in a low interest-rate environment and is considered a hedge against market volatilities. Gold prices have surged more than 34% so far this year.
Gold is supported by safe-haven bets as geopolitical tensions and political uncertainty continue, with Japan now being added into the mix on the political uncertainty front after the weekend election, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Republican former U.S. President Donald Trump and Democratic Vice President Kamala Harris are also caught in a tight race for the White House.
On the geopolitical front, at least 93 Palestinians were killed or missing in an Israeli strike in northern Gaza, the Gaza health ministry said.
Investors await a series of economic data, including ADP employment, U.S. Personal Consumption Expenditures, and payrolls report to further gauge the Fed’s policy stance, with its next rate decision on Nov. 7.
Markets are currently pricing in a 98% chance for a 25-basis-point rate cut by the Fed in November.
“Gold should retain its upward bias and may even flirt with $2,800 in the days ahead, as long as U.S. election risks continue weighing on market sentiment, while Fed rate cut expectations remain intact,” said Han Tan, chief market analyst at Exinity Group.
Gold prices’ rally is set to extend into 2025, as a favourable U.S. interest rate backdrop and geopolitical tensions continue to burnish its appeal, a Reuters poll showed.
However, buyers in India brushed off record high prices, making purchases for the Dhanteras and Diwali festivals.
Spot silver rose 1.9% to $34.32 per ounce. Platinum rose 1.6% to $1,049.10. Palladium rose 0.2% to $1,221.00, after hitting a 10-month high on sanction concerns on top producer Russia.
This article was generated from an automated news agency feed without modifications to text.