Gold Rises to Record High as Looming U.S. Election Fans Demand

Date: 30 October 2024 - 22:12

News ID: ۱۳۳۰۳۶

NEW YORK (Bloomberg) -- Gold rose to a record on Wednesday on haven demand before the U.S. election, and held a narrow gain after jobs and GDP data that showed the ongoing resilience of the U.S. economy.
Bullion climbed as high as $2,789.86 an ounce, topping the previous record posted, and was 0.3% higher after U.S. jobs data beat expectations, while GDP figures showed robust growth in the economy over the third quarter.
The numbers should keep the Fed on track to continue cutting interest rates in the coming quarters, including at their meeting on Nov. 6-7. Lower borrowing costs are typically beneficial for the precious metal that doesn’t offer any interest.
The precious metal has surged by more than a third this year, aided by central-bank buying and haven demand due to conflicts in the Middle East and Ukraine. The tight U.S. presidential race between Kamala Harris and Donald Trump that’s less than a week away is also front of mind for investors, with uncertainty over the outcome buoying haven purchasing.
Global gold demand swelled about 5% in the third quarter, setting a record for the period and lifting consumption above $100 billion for the first time, according to the World Gold Council. The increase — which saw volumes climb to 1,313 tons — was underpinned by stronger investment flows from the West, including more high-net-worth individuals.
Spot gold rose 0.3% to $2,783.88 an ounce as of 1:04 p.m. in London. The Bloomberg Dollar Spot Index was little changed. Silver, palladium and platinum all declined.
Attention will now turn to U.S. inflation and payroll figures at the end of the week for further clues on the Fed’s easing trajectory into 2025. The reports are forecast to show underlying resilience in the economy and a hiccup in the labor market after two hurricanes. Economists expect policymakers to cut rates by a quarter percentage point next week.