Gold prices continued to rise, recording unprecedented historical levels, during early Monday trading, driven by rising tensions in the Middle East and uncertainty over the US elections, while silver reached its highest level in about 12 years.
Market Update
Spot gold rose 0.2 percent to $2,724.88 per ounce by 0037 GMT, after hitting an all-time high of $2,725.81 earlier in the session.
U.S. gold futures rose 0.4 percent to $2,740.00.
Markets are pricing in a 99 percent chance of a Fed rate cut in November, according to the CME Fedwatch tool. The European Central Bank also cut rates by a quarter point last week.
Gold is expected to trade in the $2,500-$2,800 range in the coming months as prices get support from interest rate cuts by the US Federal Reserve and high levels of geopolitical tension, according to analysts at BMI.
Low interest rates make bullion more attractive, as it does not pay returns but is also considered a safe investment in times of turmoil.
Silver prices rose 0.1% to $33.69 an ounce, after hitting their highest level since late 2012. Silver is considered an investment asset because of its relationship with gold and industrial metals.
While platinum was steady at $1,013.54, palladium rose 0.2 percent to $1,081.50.
On the other hand, the US budget deficit rose to $1.833 trillion for fiscal year 2024, the highest level except for the Covid year, as interest on the federal debt exceeded $1 trillion for the first time, according to the US Treasury Department.
