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Gold prices inched closer to record highs on Tuesday, driven by uncertainty over the upcoming 2024 U.S. presidential election and critical economic reports that are likely to shape Federal Reserve rate decisions.
As of 07:00 ET (11:00 GMT), Spot gold rose 0.3% to $2,750.25 an ounce, while December gold futures climbed 0.3% to $2,762.75 an ounce. The current political landscape, with a tightly contested race between Donald Trump and Kamala Harris ahead of the Nov. 5 election, has fueled investor interest in safe havens like gold. Recent polling indicates Trump gaining traction, sparking concerns about further debt increases if he wins; his proposals suggest an additional $7.5 trillion in debt over the next decade, compared to the $3.5 trillion increase proposed by Harris.
Safe Haven Demand Ahead of Fed-Influencing Data
In addition to election uncertainties, the market is bracing for a series of economic reports that could impact Federal Reserve rate plans. JOLTS job openings data is set to release on Tuesday, followed by third-quarter GDP data on Thursday and the PCE price index and nonfarm payrolls on Friday — both key indicators ahead of the Fed’s November meeting. The anticipation of these releases has bolstered demand for both the dollar and gold, with investors seeking safe assets amidst economic and political fluctuations.
Other Precious Metals and Copper Performance
Other precious metals were also on the rise: platinum futures advanced 1.3% to $1,060.60 an ounce, and silver futures grew 1% to $34.325 an ounce.
In industrial metals, copper prices fell amid concerns over China’s sluggish economic recovery, despite recent stimulus. Benchmark copper futures on the London Metal Exchange dropped 0.9% to $9,644.0 a ton, while December copper futures fell 1.3% to $4.4180 a pound. Market attention is now on China’s upcoming PMI data on Thursday, as investors look for additional insights into the country’s economic trajectory.