Breaking: Gold nears another historic high

Global gold prices rose on Tuesday, approaching record highs. This rise was supported by the uncertainty surrounding the upcoming US presidential election. Investors are also awaiting important economic data for clues on the path of interest rates at the Federal Reserve. IG Market Analyst Yip Jun Rong believes that the period leading up to the US election will provide additional support for gold. Gold is considered a safe haven against market turmoil, especially in times of instability. In addition, a temporary respite for the US dollar and Treasury yields is enhancing the appeal of gold as an investment. Despite the strong economic data, this may support more patience in cutting interest rates by the Federal Reserve. Gold prices are expected to remain supported as interest rate cut expectations stabilize.

Main Reasons for the Rise in Gold Prices

There are several factors affecting the rise in gold prices at the present time. First, concerns over the outcome of the US election are contributing to the demand for gold as a safe haven. Investors are feeling cautious due to the unstable political and economic conditions. Secondly, the trend towards gold investment is increasing due to inflation concerns. Moreover, gold is considered a hedge against currency devaluation. As economic pressures persist, investors turn to gold as a means of protecting their wealth. In this context, the increasing demand for gold shows that investors see it as a good opportunity to preserve value.

Gold Future Outlook

All eyes are on the future of gold prices as the US elections approach. Prices are expected to continue rising if uncertainty persists. Markets are likely to remain under pressure until the election results become clear. With all these factors, gold may achieve a new historical high. Investors are looking forward to the upcoming economic data.

The Impact of Economic Data on the Federal Reserve’s Interest Rate Decision

With just eight days to go until the Fed’s interest rate decision, investors are awaiting a series of crucial data releases. These releases could significantly influence the central bank’s decision and tone at its upcoming meeting. Several key indicators are due out this week. The US Job Openings (JOLTS) and Consumer Confidence (CB) data are scheduled to be released today, at 17:00 Riyadh time. These two indicators are essential for understanding the state of the labor market and consumer sentiment.

Additionally, the ADP employment data will be released on Wednesday. The ADP report is an important indicator for measuring activity in the labor market. On Thursday, the Personal Consumption Expenditures (PCE) index, which is an important measure of inflation in the US economy, will be released. Finally, the key employment report on Friday comes out, which is one of the most important economic releases.

US Elections and Their Impact on Markets

Then, on November 5, Americans will head to the polls to elect a new president. This event is pivotal in determining future economic policy. The election is expected to have a significant impact on the markets, which could influence the Fed’s decision. Elections may increase uncertainty in the markets. Investors are looking to see how the results will impact fiscal and monetary policies. Election results may lead to changes in the strategies followed by investors. The focus remains on upcoming economic data and how it will impact interest rate decisions. As the elections approach, expectations about market movements may increase. Investors need to follow the events carefully to ensure that they make informed investment decisions.

Gold is expected to continue to make new highs, supported by several economic and political factors. As the US elections approach, it remains a favorite choice for investors.

Markets await interest rate cuts

Markets are pricing in a 97% chance of a 25 basis point rate cut by the Federal Reserve. This forecast is based on the US interest rate tracker available on Investing Saudi Arabia.

The impact of interest rates on gold

Lower interest rates reduce the opportunity cost of holding gold. Gold is considered a safe haven asset during times of economic and political turmoil. When interest rates fall, investing becomes more attractive.

Why is gold considered a safe haven?

A period of low interest rates is an opportunity for investors to seek safe assets. Gold is seen as a means of preserving value during times of uncertainty. Investors also avoid low-yielding assets in light of falling interest rates.

Gold at settlement yesterday

Gold futures prices settled during trading yesterday, Monday. This came under pressure from rising US Treasury yields. At the settlement of trading, prices for December delivery settled at $2,755.9 per ounce. Prices had fallen during the session to $2,736.90.

Gold and the Dollar Now

Spot gold rose 0.4% to $2,753.00 an ounce. This price remains close to the record high of $2,758.37, which was reached last Wednesday. Meanwhile, US gold futures rose 0.3% to $2,765.20. On the other hand, the dollar index contracts settled at 104.16 points. This stability in the dollar has a significant impact on prices, as the dollar is considered stronger in times of rise.

Other Metals

Other metals are also witnessing a rise in prices. Silver in spot transactions rose 0.5% to $33.86 an ounce. Platinum also rose about 1% to $1,043.20. Palladium rose 0.8% to $1,227.84. Palladium hit a ten-month high earlier in the session. prices continue to stabilize with some minor fluctuations. Rising US Treasury yields weigh on prices, but safe-haven demand remains strong.

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