Gold price hits historic high ahead of US presidential election

With less than a week to go until the US presidential election, investors' demand for gold as a hedge against risk is increasing sharply...

Gold prices rose sharply, setting a new record last night and this morning (October 30), despite the continued rise in US Treasury bond yields. With less than a week to go until the US presidential election, investors' demand for gold as a hedge against risk is increasing sharply.

At the close of trading on Tuesday in the New York market, spot gold prices increased by 33.8 USD/oz compared to the previous session's closing price, equivalent to an increase of 1.23%, closing at 2,775.6 USD/oz - according to data from the Kitco exchange.

World gold prices are at an unprecedented high, as uncertainties surrounding the US presidential election and armed conflicts in the Middle East continue to boost demand for safe assets such as precious metals. In addition, the prospect of the US Federal Reserve (Fed) and other major central banks continuing to cut interest rates, although the pace of the Fed's rate cuts is expected to slow, also supported gold prices.

The US election will take place on November 5. Recent polls show that the voter support for former President Donald Trump and Vice President Kamala Harris is relatively equal, meaning this will be a difficult race to predict the outcome. Meanwhile, financial investors are leaning more towards the possibility of Mr. Trump being re-elected.

In the Middle East, good news continued to come on Tuesday when Israeli Prime Minister Benjamin Netanyahu is scheduled to hold a meeting to discuss a diplomatic solution to the war in Lebanon. However, observers are skeptical and believe that the instability in this region will not be resolved overnight.

As for the Fed, the futures market is pricing in a 98% chance of a 25 basis point rate cut at its November 5 meeting.

This year’s global environment, with major central banks pivoting to dovishness and heightened geopolitical uncertainty, is seen as perfect for gold, which has gained more than 34% since the start of the year and has set nearly 40 new records.