Gold prices reached a historic peak on Wednesday, driven by anxiety surrounding the U.S. election, which bolstered bullion values. Investors are also closely monitoring upcoming U.S. economic data that may provide insights into the Federal Reserve’s interest rate plans.
### Fundamentals
Spot gold increased by 0.1% to $2,778.27 per ounce as of 0026 GMT. The precious metal climbed to a record high of $2,778.79, highlighting a robust bullish trend in the market. U.S. gold futures similarly rose by 0.4% to $2,790.60.
The U.S. election scheduled for November 5th has intensified, with the uncertainty contributing to heightened bullion demand, as opinion polls suggest a tight race for the White House.
Data released on Tuesday from the U.S. Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) indicated that job openings fell to their lowest point in over three-and-a-half years in September. Additionally, data for the previous month was revised downward, illustrating a steadily cooling labor market. Conversely, U.S. consumer confidence surpassed expectations, reaching a nine-month high of 108.7 in October, up from 99.2 the prior month.
Following this data, Federal Reserve policymakers are anticipated to implement a quarter-point cut in short-term borrowing rates next week. Attention is now directed towards the forthcoming ADP employment figures, U.S. Personal Consumption Expenditures, and payrolls report to further assess the Federal Reserve’s policy direction, with the next rate decision set for November 7.
Bullion tends to perform well in environments with low interest rates and serves as a safeguard against political and economic instability.
Meanwhile, in northern Gaza, at least 93 Palestinians were reported killed or missing in an Israeli strike, according to the Gaza health ministry.
In the physical market, Indian consumers proceeded with gold purchases despite record high prices for the Dhanteras and Diwali festivals commencing on Tuesday. They remain optimistic that bullion will continue its upward trend and yield favorable returns amidst a cooling stock market.
Elsewhere in precious metals, spot silver rose by 0.2% to $34.51 per ounce, palladium increased by 0.5% to $1,050.42, while platinum decreased by 0.9% to $1,211.37.
### Upcoming Data/Events (GMT)
– 0630: France GDP Preliminary QQ Q3
– 0855: Germany Unemployment Change SA Oct
– 0855: Germany Unemployment Rate SA Oct
– 0900: Germany GDP Flash QQ SA Q3
– 0900: Germany GDP Flash YY NSA Q3
– 1000: EU GDP Flash Preliminary YY Q3
– 1000: EU Consumer Confidence Final Oct
– 1230: US GDP Advance Q3
– 1300: Germany CPI Preliminary YY Oct
– 1300: Germany HICP Preliminary YY Oct