(Bloomberg) — Gold rose to a record high on sustained haven demand from investors monitoring the upcoming U.S. elections and conflicts in the Middle East.
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Bullion prices rose Wednesday as geopolitical risks took center stage as traders focused on the close U.S. presidential election and concerns that the conflict between Israel and Iran could escalate into a broader war. , rose slightly to $2,750.34, about $1 above Tuesday's high. The bullish sentiment has spilled over into the broader precious metals complex, with silver now within range of the $35 an ounce it last reached in 2012.
The safe haven has helped offset downward pressure on U.S. Treasuries in recent days as traders bet on the Federal Reserve slowing its pace of easing. Precious metals typically do not earn interest, so rising yields and tightening monetary policy tend to weigh on precious metals.
“Regardless of the macro backdrop, gold's ability to feed into any push that drives prices higher suggests the market continues to see positive underlying flows,” Standard Chartered analyst Suki Cooper said in a note. “This suggests that further upside risks are expected in the coming weeks,” he said. . The bank expects gold prices to average $2,800 an ounce in the fourth quarter and $2,900 an ounce in the first three months of 2025.
Precious metal prices have soared by about a third this year, hitting consecutive highs and have intensified in recent months as the Federal Reserve moves to cut interest rates. Asset managers have also added to the bull market's momentum, as hedge funds increased net long positions in gold in recent trades and investors increased their holdings in exchange-traded funds (ETFs).
Spot gold prices in Singapore were little changed at $2,750.22 an ounce at 12:37 p.m. The Bloomberg Dollar Spot Index rose slightly. Silver fell, palladium stabilized, but platinum rose.
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