Gold prolonged its blazing strike to soar to a file excessive on Monday amid uncertainties surrounding the U.S. election, simmering Middle-East tensions and rate of interest cuts by main central banks. At the identical time, silver scaled a close to 12-year peak.
Spot gold was up 0.3% at $2,729.40 per ounce, as of 06:54 GMT a.m., after hitting an all-time excessive of $2,732.73 earlier. U.S. gold futures have been 0.6% larger at $2,744.80.
Helped by bullion’s rally, spot silver rose 1.1% to $34.03 per ounce, its highest since late 2012.
“This month’s rally is more driven by safe-haven demand because of geopolitical tension in the Middle East and uncertainty around the U.S. election because its outcome is looking very tight, anyone can win,” stated Soni Kumari, a commodity strategist at ANZ.
The 2024 U.S. presidential race between former President Donald Trump and Vice President Kamala Harris is neck and neck within the seven battleground states that may resolve the Nov. 5 election.
In the Middle East, lots of of Beirut residents fled their properties late Sunday, with a number of explosions heard, as Israel ready to assault websites linked to the monetary operations of the Hezbollah group.
Gold is taken into account a protected funding throughout instances of financial and political turmoil. Lower charges additionally improve its attract, as bullion yields no curiosity.
Investors additionally digested news that China minimize its benchmark lending charges, following reductions to different coverage charges final month as a part of a package deal of stimulus measures to revive the financial system.
Gold demand in high client China has taken a success amid excessive costs and an financial slowdown.
Elsewhere, merchants are pricing a 99% likelihood of a U.S. Federal Reserve (Fed) rate of interest minimize in November. The European Central Bank (ECB) slashed charges by 1 / 4 level final week.
For gold, “$2,800 looks to be a viable year-end target… There will be a temptation to lock in some profits, which could slow the immediate upside,” stated Tim Waterer, chief market analyst at KCM Trade.
Platinum rose 0.3% to $1,016.21 per ounce, its highest since mid-July. Palladium gained 0.3% to $1,076.
Source: www.dailysabah.com