Gold Hits Record $2,707 As US Election And Middle East Tensions Loom
Date
10/17/2024 3:21:53 PM
(MENAFN- The Rio Times) Gold prices reached a new record high on Thursday, October 17, surpassing $2,700 per troy ounce.
The surge in prices stems from increased demand for safe-haven assets due to uncertainties surrounding the upcoming US elections and ongoing conflicts in the Middle East.
On the Comex division of the New York Mercantile Exchange (Nymex), gold futures for December delivery closed 0.60% higher at $2,707.5 per troy ounce. This upward trend in gold prices continues to gain momentum as investors seek stability in uncertain times.
Carsten Menke, head of next-generation research at Julius Baer Bank, explains that the prospect of lower interest rates in the United States may attract more safe-haven seekers.
He also notes that the US presidential elections are driving gold purchases by large investors. These investors believe that the dollar will face pressure due to increasing fiscal deficits.
They hold this view regardless of who occupies the White House. This sentiment further fuels the demand for gold as a hedge against potential economic instability.
The European Central Bank (ECB ) has also cut interest rates for the third time this year by 0.25 percentage points. This decision reflects concerns about the eurozone economy and adds to the overall economic uncertainty.
Additionally, expectations are growing for stronger gold demand in China. Menke suggests that the economic outlook in China is unlikely to improve significantly despite recent support measures.
This situation may attract more safe-haven seekers in China back to the gold market. The ongoing rally in gold prices demonstrates the metal's enduring appeal as a safe-haven asset during times of geopolitical and economic uncertainty.
As global tensions persist and economic challenges loom, gold continues to shine as a preferred investment for those seeking stability.
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