Global gold prices rose during these moments of trading on Tuesday, as they hovered near the highest record level recorded in the previous session amid uncertainty over the US elections, ongoing tensions in the Middle East, and expectations of interest rate cuts by central banks.
Gold hit an all-time high of $2,740.37 on Monday and has gained about 32% so far this year.
“There are still tailwinds for gold, including its status as an attractive hedge against U.S. election uncertainty and geopolitical risks, resilient demand from central banks and ETF buying,” said IG market strategist Yip Jun Rong.
He added: “Buyers may look to the $2,800 level next, as political uncertainty continues as the election approaches.”
With the U.S. presidential election just two weeks away, former President Donald Trump and Vice President Kamala Harris are locked in a fierce battle to win some of the most competitive states.
On the other hand, traders now see a 91% chance of a Fed rate cut of a quarter basis point in November, according to the US interest rate tracker available on Investing Saudi Arabia.
Gold’s rise comes despite a stronger US dollar and yields. Benchmark 10-year Treasury yields rose to a 12-week high in the latest session, while the US dollar held on to a two-and-a-half-month high on Tuesday.
Gold at settlement yesterday
Gold prices rose at the close of trading on Monday, despite the rise in the dollar and US Treasury yields, and as investors assessed the possibility of a rate cut and geopolitical tensions.
