Investing.com — Gold prices hit a new record high on Tuesday as safe-haven demand for the yellow metal was supported by weaker economic data and uncertainty ahead of the 2024 presidential election.
At 2:02 PM ET (1800 GMT), the price was up 1% at $2,769.02 per ounce, moving above a record high of $2,759 per ounce. Meanwhile, December bonds maturing rose 0.9% to $2,781.00.
The yellow metal is boosted by uncertainty surrounding expectations of a close US presidential election on November 5. Recent polls suggest that Donald Trump and Kamala Harris are nearing the final days of their pre-election campaign. However, prediction markets show that Trump has a significant advantage, increasing gold’s appeal given growing concerns about an escalating US debt crisis.
The U.S. deficit was $1.8 trillion for the fiscal year that ended in September, accounting for about 6% of gross domestic product. If Trump wins and his Republican Party gains control of both houses of Congress, debt in the world’s largest economy could skyrocket by another $7.5 trillion over the next decade, some analysts say.
Demand for safe havens has also been boosted by anticipation of a series of key economic data this week, which will likely play a role in the Federal Reserve’s interest rate plans.
Data on Tuesday showed US job openings were lower than expected in September, falling to the lowest level since January 2021, in a possible sign of a gradually slowing labor market that could underpin the Fed’s case for raising rates again in November would decrease.
Elsewhere, third-quarter data will be released on Thursday. data — the Fed’s favorite inflation gauge — and is expected to be released Friday.
(Ambar Warrick and Peter Nurse contributed reporting.)
