Investing.com — Gold prices rose to a record high in Asian trading on Wednesday, extending a string of recent gains as anticipation of a tight U.S. presidential race and ongoing tensions in the Middle East boosted demand for safe havens.
The yellow metal’s strength came even as the dollar hit a nearly three-month high amid rising expectations that the Federal Reserve would cut rates at a slower pace. Other precious metals have also posted strong gains in recent sessions.
rose slightly to a record high of $2,750.35 per ounce, while the December expiration rose 0.2% to $2,764.15 per ounce.
Gold boosted by demand for safe havens
The rise in precious metals prices was mainly driven by increased demand for safe havens as traders prepared for a close presidential election.
According to some recent polls and online prediction markets, Republican candidate Donald Trump may have gained a lead over Democrat Kamala Harris.
But analysts still view the race as too close, with about two weeks to go until the vote.
Demand for sanctuary was also boosted by ongoing tensions in the Middle East as Israel continued its offensive against Hamas and Hezbollah. While US diplomats tried to push for a ceasefire, there still appeared to be no sign of de-escalation of the conflict.
Israel is also reportedly preparing a retaliatory strike against Iran.
The demand for safe havens allowed gold to largely shake off the pressure of a stronger and rising price.
Recent signs of resilience in the US economy have raised expectations that the Fed will cut rates by 25 basis points in November, down from the 50 basis point cut in September. Traders also saw that they were pricing in a higher final price.
Other precious metals were mixed Wednesday, cooling off after a recent rally. fell 0.5% to $34.885 per ounce, while it rose 0.5% to $1,046.10 per ounce.
Copper retreats, Chinese stimulus in focus
Among industrial metals, copper prices fell on Wednesday, while the focus remained on more stimulus measures in top importer China. A meeting of the National People’s Congress later this month will provide more clues about budget spending.
The benchmark on the London Metal Exchange fell 0.4% to $9,587.50 per tonne, while December fell 0.4% to $4.3718 per pound.
Copper prices have suffered steep losses over the past two weeks after new stimulus measures from China largely lagged behind, as Beijing did not provide details on the size and timing of the planned measures.
