Investing.com — Gold prices rose slightly in Asian trading Thursday but were on a decline from record highs as concerns about the U.S. election and changing interest rate outlook favored the dollar.
But despite Wednesday’s losses, the yellow metal was still trading higher this week, with the increased safe haven expected to keep gold prices buoyant in the coming days.
rose 0.3% to $2,724.70 per ounce, while the December expiration rose 0.3% to $2,737.15 per ounce at 00:23 ET (04:23 GMT). Spot prices hit a record high of $2,758.53 per ounce earlier this week.
Gold remains supported by safe haven demand
The yellow metal still retained most of its gains this week as safe haven demand remained high despite the close US presidential election and increased tensions in the Middle East.
Israeli officials presented tough rhetoric against Iran on Wednesday, expressing concern that an Israeli attack on Tehran will cause a serious escalation of the war. Israel also continued its offensives against Hamas and Hezbollah.
In the US, Republican candidate Donald Trump gained an advantage over Vice President Kamala Harris in the upcoming elections, which take place in less than two weeks.
But markets still expect a closely fought race, leaving uncertainty about the future of American politics high.
Increased demand for safe havens kept traders largely biased towards gold and other precious metals, which also helped them weather the dollar’s strength as it benefited from growing expectations that interest rates will fall at a slower pace .
Other precious metals were positive on Thursday and also posted gains this week. rose 0.7% to $1,037.80 per ounce, while the price rose 0.6% to $34,050 per ounce.
Copper prices rise with PMIs in focus
Among industrial metals, copper prices rose on Thursday, with the focus shifting to the upcoming readings of the and .
The benchmark on the London Metal Exchange rose 0.7% to $9,581.50 a tonne, while December rose 0.7% to $4.3637 a pound.
Both contracts posted losses this week as traders waited for more signals on stimulus measures in top importer China. A meeting of the country’s National People’s Congress will take place later this month, after which the government is expected to decide on plans for more budget spending.
