Gold surpasses the US$2,700 per ounce barrier this Friday for the first time in its history, driven by nervousness about the elections in the United States and tensions in the Middle East, which increased the demand for a safe haven. The metal is heading towards US$2,800, settling at US$2,730 after rising 0.8% on the day.
In addition, the easing of monetary policies contributed to its rise, accumulating a gain of 2% during the week.
According to Christopher Wong, currency strategist at OCBC, gold could gain even more momentum due to the volatility of electoral events and geopolitical uncertainties. Hezbollah announced that it will intensify its confrontation with Israel following the death of Hamas leader Yahya Sinwar.
Gold: the political impact
Regarding the US presidential elections, Kamala Harris and Donald Trump are in a battle to capture the last voters. Tai Wong, an independent metals trader in New York, highlighted that gold continues to rise despite the strength of the dollar, describing this bull market as one that shows no signs of exhaustion.
Even though US economic data suggests a strengthening economy, a Federal Reserve rate cut is expected in November, with a 90% probability assigned by traders. Additionally, the European Central Bank has cut interest rates for the third time this year, weakening the euro zone economy.
Low interest rates increase the attractiveness of gold, which does not generate returns. Ryan McIntyre, portfolio manager at Sprott Asset Management, believes gold will remain a solid long-term investment, benefiting from the fragile fiscal situation in many Western countries and global demand for an independent store of value.
During the annual meeting of the London Bullion Market Association, delegates predicted that gold would reach $2,941 in the next 12 months, while silver could reach $45. On that same day, spot silver rose 0.9%, reaching US$31.97, while platinum advanced 0.6%, to US$997.80, and palladium climbed 0.6%. , au$s1,048.55.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
