Gold reached an all-time high on Thursday, fueled by growing uncertainty surrounding the US election and increasing bets on further interest rate cuts by major central banks. Spot gold climbed 0.3% to $2,680.19 per ounce, after hitting a record high of $2,685.60 earlier in the day. US gold futures also gained, rising 0.2% to $2,695.90.
Investors are turning to safe-haven gold to hedge against volatility tied to the US election, with market analysts suggesting a Donald Trump presidency could heighten trade tensions and expand the US budget deficit, factors that typically support gold prices. The US retail sales and weekly jobless claims data, due later today, will be closely watched to assess the economic outlook.
Expectations of lower global interest rates are also pushing gold higher, as they reduce the cost of holding bullion. Traders anticipate a 92% chance of a 25-basis-point rate cut by the Federal Reserve next month, while the European Central Bank is expected to lower rates for the third time this year. Additionally, slowing British inflation has increased the likelihood of a Bank of England rate cut.
Gold is facing immediate resistance at $2,700, but some analysts project it could climb to $2,900 by next year, driven by ongoing geopolitical risks such as the escalating tensions in the Middle East.
In other metals, spot silver rose 0.6% to $31.50, platinum firmed 0.7% to $1,000.50, while palladium fell 0.6% to $1,017.26.
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