Gold Reaches Record High Amid U.S. Election Uncertainty and Middle East Tensions

Gold prices hit a record high in Asian trading on Wednesday, driven by safe haven demand as investors brace for a tight U.S. presidential race and continued geopolitical unrest in the Middle East. Spot gold climbed to $2,750.35 per ounce, with December futures rising 0.2% to $2,764.15.

Despite the U.S. dollar nearing a three-month high, gold’s allure remained strong, as market uncertainty persists. Polls suggest a close race between Republican Donald Trump and Democrat Kamala Harris, while tensions in the Middle East escalate with Israel’s ongoing military actions against Hamas and Hezbollah, and potential retaliation against Iran.

Safe haven demand overshadowed the impact of a stronger dollar and rising Treasury yields. The Federal Reserve is expected to implement a smaller rate cut of 25 basis points in November, down from September’s 50 bps reduction.

Other Precious Metals

• Silver: Fell 0.5% to $34.885 per ounce.
• Platinum: Rose 0.5% to $1,046.10 per ounce.

Copper Slips as China Stimulus Disappoints
Copper prices fell 0.4%, reflecting disappointment over China’s recent stimulus measures. Markets are now looking to the National People’s Congress meeting later this month for further cues on fiscal spending. Copper futures were down to $9,587.50 per ton on the London Metal Exchange, as traders navigate uncertainty over demand from the world’s largest importer.