Pending the verdict of the presidential election in the United States at the beginning of November, gold reached a new record.
This Thursday, gold prices reached an all-time high, with an increase of 0.2% in spot transactions, reaching $2,678.13 per ounce.
During the session, gold even recorded a record peak of $2,685.60. U.S. gold futures also rose 0.1% to $2,693.60.
The rise is supported by increased demand amid expectations of further US interest rate cuts and uncertainty surrounding the US presidential elections.
Note that gold has increased by more than 30% since the start of the year, reaching record levels.
Falling rates strengthen the appeal of gold
The rise in gold prices is driven by expectations that the Federal Reserve could cut interest rates again this year, following a cut last month, as well as uncertainty related to current geopolitical tensions.
Likewise, the European Central Bank is expected to announce an interest rate cut later today. This move, along with low interest rates in general, makes gold all the more attractive as a safe haven.
Indeed, gold does not generate returns, but in times of economic uncertainty and geopolitical tensions, investors turn to it to secure their capital.
U.S. retail sales and industrial production data for September, as well as weekly unemployment figures, are also due later today.
Among other precious metals, silver fell 0.3% in spot trading, reaching $31.57 an ounce. Platinum rose 0.6% to $999.20, while palladium lost 0.4% to $1,019.56.
Jihen Mkehli
Published on 10/17/24 2:19 p.m.
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