Gold climbs to record as US election jitters drive haven demand

Spot gold was 0.1% higher at $2 789.04 an ounce at 9:11 a.m. in Singapore.

Gold climbed to a record, boosted by haven demand before the US election and shrugging off data that could influence the size of Federal Reserve rate cuts this year.

Bullion reached $2 790.10 an ounce in early trading on Thursday, narrowly beating the previous all-time high posted the day before. While higher-than-expected US jobs data and robust GDP figures saw traders trim bets on the size of interest-rate cuts by the US central bank, it remains on track to implement more monetary easing at its meeting next week. Lower borrowing costs tend to benefit the precious metal, as it doesn’t pay interest.

Gold has surged by more than a third this year, supported by central-bank buying and haven demand amid conflicts in the Middle East and Ukraine. The tight US presidential race between Kamala Harris and Donald Trump is also creating uncertainty that’s underscoring bullion’s role as a place of safety for investors.

ADVERTISEMENT CONTINUE READING BELOW

Still, the November 5 election is seen as a major risk event for the precious metal, which could open gold up to a correction of more than $100 an ounce, according to Ole Hansen, head of commodity strategy at Saxo Bank A/S.

Spot gold was 0.1% higher at $2 789.04 an ounce at 9:11 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Silver was flat, while palladium and platinum declined.

© 2024 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.