He gold rose on Monday for the fifth consecutive day, reaching all-time highs for the uncertainty over the US elections, tension in the Middle East and expectations of interest rate cuts from central banks, while silver traded at near 12-year highs.
Spot gold gained 0.5% to $2,733.50 an ounce, after hitting a record high of $2,733.82 earlier in the session. US gold futures rose 0.7% to $2,748.20.
“Uncertainty over the outcome of the US presidential election is one factor supporting hedging demand for gold, and the other could probably be geopolitical tensions in the Middle East,” said Giovanni Staunovo, an analyst at UBS.
The presidential race between the former Republican president donald trump and the Democratic vice president Kamala Harris is tied in the seven battleground states that will decide the November 5 elections.
Elsewhere, in the Middle East, hundreds of Beirut residents fled their homes as Israel prepared to attack sites linked to the Hezbollah group’s financial operations.
Gold, considered a hedge against political and geopolitical uncertainty, is up 32% so far this year.
“In my opinion, strong demand from central banks also supports gold. We expect it to reach $2,900 per ounce in the next 12 months, supported by further rate cuts from the Federal Reserve,” Staunovo added.
In other precious metals, spot silver rose 1.2% to $34.06 an ounce, its highest level since late 2012; platinum improved 0.5% to $1,018.90, its highest since mid-July; and palladium fell 0.3%, to 1,075.87 dollarsis.
The prices of copper They hit one-week highs on Monday, as interest rate cuts in China raised hopes of stronger demand in the major consumer, amid lingering concerns about the country’s ailing real estate sector.
Benchmark copper on the London Metal Exchange (LME) rose 0.8% to $9,707 a tonne, from a previous session high of $9,758.
China’s rate cut was expected, but the 25 basis point reduction was larger than expected and follows cuts in other rates last month as part of a stimulus package to revive the economy.
“Copper is off to a strong start to the week, buoyed by a larger-than-expected lending rate cut,” a metals trader said, adding that the 21-day moving average of $9,780 could limit gains.
The Chinese economy grew in the third quarter at the slowest pace since early 2023, due to weak domestic demand, slowing export growth and the crisis in the real estate sector, which accounts for a significant part of metals demand. industrial.
Also worrying the market are copper stocks in warehouses overseen by the Shanghai Futures Exchange, which rose 8% last week to 168,425 tons, fueling concerns about physical demand during months of traditionally strong consumption in China.
In other base metals, aluminum rose 0.7% to $2,630 a ton; zinc advanced 0.9%, to $3,119; lead fell 0.2%, to $2,068; tin added 0.3%, to $31,405; and nickel marjoram 1.1%, to $17,085.
Source: Ambito
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