US election, conflict in the Middle East push gold prices to new highs

DNVN - On October 29, global gold prices reached a new peak as widespread geopolitical instability and predictions about the US Federal Reserve's (Fed) interest rate policy created momentum for the precious metal's price increase.

During the trading session, spot gold prices edged up 1% to $2,769.25 an ounce. Notably, spot gold prices hit a record high of $2,772.42 an ounce during the session. US gold futures closed at $2,781.1 an ounce, up 0.9%.

Gold typically benefits from low interest rates as it is seen as a safe haven from market risks. It has gained more than 34% since the start of the year.

Safe-haven demand has supported gold prices amid continued geopolitical uncertainty, including the upcoming U.S. presidential election and escalating conflict in the Middle East, said Peter Grant, vice president and senior metals strategist at Zaner Metals. Japan has also joined the list of countries facing political uncertainty following the recent election.

Investors are also waiting for US economic data such as the jobs report and personal consumption spending to get a clearer view of the Fed's policy stance before the central bank announces its interest rate decision.

Current market expectations are that the Fed has a 98% chance of cutting rates by 25 basis points at its November 6-7 meeting.

Han Tan, chief market analyst at Exinity Group, said that gold prices will continue to rise and could approach the $2,800/ounce threshold in the near future. According to him, this scenario is feasible if the US election continues to put pressure on market sentiment while the Fed maintains expectations of interest rate cuts.

The uptrend in gold prices could last until 2025, thanks to favorable US interest rates and persistent geopolitical tensions, a Reuters survey showed.

In the precious metals market, spot silver prices rose 1.9% to $34.32 an ounce, while platinum rose 1.6% to $1,049.10 an ounce.

In Vietnam, at the close of the session on October 29, Saigon Jewelry Company listed the price of SJC gold in Hanoi at 87.00 - 89.00 million VND/tael (buy - sell).

Cao Thong (t/h)

Source: https://doanhnghiepvn.vn/kinh-te/bau-cu-my-xung-dot-tai-trung-dong-dua-gia-vang-dot-pha-dinh-moi/20241030074928934