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gold price This week, it hit a record high amid uncertainty over the upcoming election and the rise in the U.S. Treasury debt.
Gold futures prices have risen more than 32% year-to-date and more than 38% over the past year, hitting multiple all-time highs along the way.
Gold hit a new record of $2,738 on Monday and $2,760 on Tuesday, but has since pared some of that gain to close at $2,749 on Thursday.
Investors turned to gold last year as a safe haven from a range of geopolitical risks, including the ongoing conflict in the Middle East and Ukraine. The direction of U.S. economic policy after the election, the Fed's interest rate cut plan and uncertainty surrounding long-term policy Growing national debt Investment in gold has also been strengthened.
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Gold prices rose to record highs this week on the back of uncertainty surrounding the upcoming election and widening budget deficits. (Photo credit: ARNE DEDERT/dpa/AFP via Getty Images/Getty Images)
“What we're actually seeing is that gold continues to be seen as the classic hedge against inflationary pressures, with safe-haven demand and capital inflows,” said David Meagher, director of metals trading at High. “Gold remains very well supported.” Ridge Futures.
“Uncertainty us election “Given the anxiety markets may be feeling leading up to the election, this is another pillar of support for the gold market.”
“Concerns about the rising US fiscal debt outlook strengthen the case for investing in gold,” ANZ said in a report.
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The federal government's budget deficit is expected to expand to $1.8 trillion in fiscal 2024 and continue to grow. (iStock / iStock)
federal government budget deficit In fiscal year 2024, which ended at the end of September, it exceeded $1.8 trillion. This is the third-largest budget deficit in history, second only to deficits in fiscal years 2020 and 2021, which occurred amid increased federal spending due to the coronavirus pandemic and related economic disruption.
Deficits are expected to continue rising, with the nonpartisan Congressional Budget Office (CBO) predicting annual budget deficits will exceed $2 trillion starting in fiscal year 2030 and will reach nearly $2.9 trillion just four years from now. I am doing it.
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Vice President Harris and former President Trump have both announced economic plans that are expected to trigger an economic crisis. deficit expands It will happen at a faster pace than CBO predicted over the next 10 years. CBO's baseline projects that the debt-to-GDP ratio, which measures the debt held by the public and the size of the U.S. economy, will break the record set in 1946 during the next four years of a presidential term.
continued federal spending and budget deficits, and federal reserve Plans to tackle stubborn inflation have pushed up yields on U.S. Treasuries, another safe haven for investors, despite expectations that the central bank will cut rates again in November.
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Bob Haberkorn, senior market strategist at RJO Futures, said in a Reuters report on Wednesday that gold “will be hard-pressed to move higher given where yields are going,” but that gold could be expected to rise as early as the 20th. It added that prices could reach $2,800 per ounce. This weekend in response to demand for safe havens.
Reuters contributed to this report.
