Gold prices have surged in 2024, fuelled by political uncertainties like the upcoming US election and Middle East tensions. Investors are turning to gold for safety, pushing prices close to USD 2,800 per ounce. Silver, platinum, and palladium are also gaining, supported by supply issues, strong demand, and market caution.
Gold rises on political uncertainty
As of 06:58 GMT, spot gold rose by 0.6% to USD 2,735.14 per ounce, with US gold futures climbing 0.4% to USD 2,749.30.
This follows an all-time high of USD 2,740.37 reached on Monday.
Gold has surged over 32% in 2024, driven by heightened political and geopolitical risks, with the upcoming US election and escalating tensions in the Middle East boosting demand for gold as a safe-haven asset.
Gold set for further increases
Analysts expect gold prices to continue rising, with the USD 2,800 per ounce mark in focus.
Ongoing central bank demand, coupled with geopolitical uncertainties and the looming US election, are key factors supporting this momentum in the short term.
Gold (XAUUSD) continues its bullish trend, closing at USD 2,735.84, with upward momentum on the VT Markets app.
Additionally, traders anticipate an 87% likelihood of a 25-basis-point rate cut from the US Federal Reserve in November.
This potential shift in monetary policy favours gold, as it traditionally benefits from lower interest rates.
Meanwhile, 10-year US Treasury yields hit a 12-week high, signalling broader market caution, while the US dollar remains near its highest level in two and a half months.
The Fed is likely to downsize its rate cuts to 25 basis points at both the November and December policy meetings, according to Nomura https://t.co/i5wxxbyacD
In the broader precious metals market, silver rose by 1.1% to USD 34.12 per ounce, following its highest level since late 2012 in the previous session.
Platinum and palladium also saw gains, with platinum up 1% to USD 1,013.10 and palladium increasing by 1.4% to USD 1,065.44 per ounce. These metals continue to benefit from supply constraints and robust industrial demand.
Looking ahead, gold and other precious metals are expected to maintain their upward trajectory, particularly as geopolitical tensions and central bank policies remain at the forefront.
Traders will keep a close eye on developments in the Middle East and upcoming announcements related to US monetary policy.
