Gold prices rose slightly in Asian trade on Thursday, recovering from a recent decline from record highs. The yellow metal remains underpinned by safe-haven demand as uncertainty surrounding the U.S. election and interest rates continues to favor the dollar. Despite Wednesday’s losses, gold prices rise again, with expectations of further gains in the coming days.
Spot gold increased by 0.3% to $2,724.70 an ounce, while December gold futures climbed by 0.3% to $2,737.15 an ounce. Earlier this week, spot prices hit an all-time high of $2,758.53 an ounce, showcasing gold’s strength in the current volatile environment.
Safe Haven Demand Continues to Support Gold
Although gold experienced a brief dip, it has retained most of its gains this week, driven by safe-haven demand amid rising geopolitical tensions and election-related uncertainties. Gold prices rise as investors remain cautious in the face of the upcoming U.S. presidential election, where Republican nominee Donald Trump is gaining momentum against Vice President Kamala Harris. With the election less than two weeks away, market participants anticipate a closely contested race, keeping political uncertainty high.
The conflict in the Middle East has also contributed to the demand for gold. Israeli officials intensified their rhetoric against Iran, sparking fears of a broader regional conflict. Israel’s ongoing military operations against Hamas and Hezbollah further heighten concerns, making gold an attractive safe-haven asset during these uncertain times.
Despite the dollar strengthening on expectations of a slower pace of interest rate cuts, gold has managed to weather the storm, maintaining its appeal as a safe investment option. Traders continue to favor gold and other precious metals as uncertainty dominates the global economic and political landscape.
Other Precious Metals Also See Gains
Gold was not the only precious metal benefitting from the current market climate. On Thursday, platinum futures rose 0.7% to $1,037.80 an ounce, while silver futures gained 0.6%, reaching $34.050 an ounce. As with gold, the demand for these metals is expected to remain robust as investors seek safe-haven assets amid heightened geopolitical risks.
Copper Prices Rise as PMI Data Remains in Focus
Turning to industrial metals, gold prices rise alongside copper, which also saw gains on Thursday. Benchmark copper futures on the London Metal Exchange increased by 0.7%, reaching $9,581.50 a ton. December copper futures followed suit, rising by 0.7% to $4.3637 a pound.
However, copper has been under pressure this week, with traders awaiting further cues on stimulus measures from China, the world’s largest copper importer. The upcoming National People’s Congress meeting later this month is expected to provide more clarity on fiscal spending, which could further influence copper prices.
In conclusion
Gold prices rise slightly after falling from record highs, with safe-haven demand keeping the yellow metal supported amid global uncertainties.
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