Gold Hits Record High as US Election Anxieties Ignite Safe-Haven Rush

SEATTLE (Scrap Monster): Gold hit a lifetime high on Wednesday on safe-haven demand ahead of the U.S. presidential election, while investor focus is also on U.S. economic data for clues on the rate cut outlook.

Spot gold was up 0.3% to $2,783.38 per ounce, as of 0739 GMT, after hitting an all-time high of $2,789.73 earlier in the session.

U.S. gold futures rose 0.5% to $2,795.90.

"Gold is very much being anchored on the U.S. election outcome. In the near term, spot gold will face resistance at $2,800, then followed by $2,826," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

 The Nov. 5 election has entered its final stretch, with polls indicating fierce competition between Donald Trump and Kamala Harris.

Gold's record rally has also been propped up by expectations of more Fed rate cuts. Lower rates reduce the opportunity cost of holding zero-yield bullion.

Traders are betting a quarter-point rate reduction next week after September U.S. job openings dropped to their lowest since January 2021.

 "If we see hot inflation numbers or a strong jobs report, then there could be a derailment in gold prices," Wong said.

Data expected this week includes the ADP employment report at 1215 GMT on Wednesday, U.S. Personal Consumption Expenditures (PCE) on Thursday and the payrolls report on Friday.

Meanwhile, Goldman Sachs lowered its gold forecast to $3,000 from $3,080 by December 2025, but maintained its bullish stance. It also anticipates a 7% upside from Western exchange-traded fund (ETF) holdings.

 Global gold demand, excluding OTC trading, held steady in the third quarter, as rising investments offset lower jewellery consumption, the World Gold Council reported.

On Wednesday, spot silver shed 0.6% to $34.24 per ounce. Palladium fell nearly 4% to $1,175.59 per ounce, while platinum lost 0.3% to $1,042.40.

Stronger demand and the risk of supply disruptions are expected to drive platinum and palladium prices higher in 2025 from this year's averages, a Reuters poll showed.

 Courtesy: www.reuters.com