Investors’ desire for the safe-haven asset, fueled by uncertainties in the U.S. presidential election and the Middle East war and an easing monetary policy environment, led to gold prices reaching all-time highs on Thursday.
At 10:23 a.m. ET (1423 GMT), spot gold had increased 0.6% to $2,689.86 an ounce. At $2,705.30, U.S. gold futures increased by 0.5%.Due to ongoing geopolitical uncertainty and the possibility of additional rate cuts by the Federal Reserve following a half-percentage point rate decrease last month, gold has surged more than 30% this year, breaking record values.
“I think that potential is also just attracting a bit of attention,” said Ole Hansen, head of commodity strategy at Saxo Bank, about the LBMA poll released earlier this week from Miami, which stated that the base expectation for gold prices was to surge near $3,000 in the upcoming year with silver doing even better.
Following data showing U.S. retail sales grew somewhat more than anticipated in September and a Labour Department report revealing an unexpected decline in unemployment last week, prices had retreated from record highs earlier in the U.S. session.
Jim Wyckoff, senior market analyst at Kitco Metals, stated that the two reports align with the monetary policy hawks.
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