Gold hits new highs again! Will it break through the $2700 mark?
Gold prices continued to hit a new record high on Thursday, approaching $2700, as uncertainty surrounding the US presidential election and the Middle East conflict prompted investors to seek safe-haven assets. Gold prices have risen by over 30% this year, making it one of the best-performing commodities. Experts predict that gold prices may climb to $2941 per ounce in the next 12 months, even approaching $3000. Despite recent US economic data supporting the hawkish stance of the Federal Reserve, gold prices have retreated slightly, but the tense situation in the Middle East continues to provide strong support for the precious metal
On Thursday, gold continued to hit record highs, approaching the $2700 mark at one point. The uncertainty surrounding the US presidential election and the Middle East conflict has prompted investors to seek safe-haven assets, while the loose monetary policy environment has maintained the upward momentum of gold.
Gold has risen by more than 30% this year, making it one of the best-performing commodities. Nitesh Shah, a commodity strategist at WisdomTree, said, "In addition to concerns in the Middle East, the upcoming US election appears to be evenly matched. This brings a lot of uncertainty, and gold is often sought after as a safe haven in times of uncertainty."
Due to the different risks to the US economy posed by the two US presidential candidates, whether former President Trump or Vice President Harris wins, gold may receive further support.
Representatives at the London Bullion Market Association (LBMA) annual conference earlier this week predicted that gold prices will climb to $2941 per ounce in the next 12 months.
Ole Hansen, head of commodity strategy at Saxo Bank, said, "A survey released at the LBMA's Miami conference earlier this week showed that they expect gold prices to rise to nearly $3000 in the next year, with silver performing even better, which I think has also attracted some attention."
During the pre-US session, data showed that US retail sales in September increased slightly more than expected, and after the Labor Department reported an unexpected decrease in initial jobless claims last week, US Treasury yields and the US dollar strengthened, causing gold prices to retreat. Jim Wyckoff, chief market analyst at Kitco Metals, said, "Both reports support the Fed's relatively hawkish stance."
Bob Haberkorn, senior market strategist at RJO Futures, said, "These are all good data points. I think the Fed wants to lower rates to even lower levels, and by the end of this year, they may cut rates by at least another 25 basis points. The lower the interest rates, the higher gold prices should be."
The ongoing tensions in the Middle East also provide strong support for precious metals. Israel announced that its military had killed Hamas leader Sinwar, further complicating the situation in the Middle East