Investing.com — Gold prices rose in Asian trading on Wednesday, near record highs, after a fiery debate between presidential candidates Kamala Harris and Donald Trump increased uncertainty over the 2024 election.
Anticipation of a major US inflation reading also kept investors favoring safe havens such as bullion and the Japanese yen, while the dollar fell in the aftermath of the debate.
A decline in US stock index futures also meant a deterioration in risk appetite.
rose 0.1% to $2,519.73 per ounce, while the December expiration rose 0.2% to $2,548.45 per ounce at 00:19 ET (04:19 GMT).
Dollar retreats, gold rises after Harris-Trump debate
The gains in gold followed a decline in the dollar after the presidential debate late Tuesday.
Both candidates engaged in fiery rhetoric against each other’s personalities and policies, with the debate furthering expectations for a closely fought presidential race in 2024.
But this idea added more uncertainty to the 2024 election, especially given that both Harris and Trump presented very different plans for the economy.
Gold benefited from some safe-haven demand after the debate, with spot prices trading just below a record high of $2,532.05 an ounce.
CPI data awaited more interest rate guidance
Caution was also advised with US inflation figures due later on Wednesday.
The outcome is expected to show a further cooling in US inflation, which will likely give the Federal Reserve more confidence to start cutting rates.
Wednesday’s inflation data comes just a week ahead of , with the central bank expected to cut rates by at least 25 basis points.
But recent signs of resilience in the US economy caused traders to scale back their bets on a bigger 50 basis point rate cut next week. This idea had roiled global financial markets last week, with gold shying away from reaching new highs.
Other precious metals rose on Wednesday. rose 0.1% to $945.50 per ounce, while the price rose 0.6% to $28.777 per ounce. Both metals have largely lagged behind gold in recent months.
Copper is rising, but the jitters in China remain
Among industrial metals, copper prices rose as they recouped some recent losses. But concerns about China – particularly the country’s slowing demand for copper, and a possible trade war with the West – kept sentiment on copper wary.
The benchmark on the London Metal Exchange rose 0.7% to $9,086.0 per tonne, while the index rose 0.6% in one month to $4.1285 per pound.
US lawmakers were seen preparing a slew of new restrictions on Chinese industry, which Beijing criticized. Adopting these measures could herald a renewed trade war with the West, especially after the US and its allies recently imposed heavy import duties on Chinese electric vehicles.
