Gold prices saw a slight increase in Asian trade on Thursday, recovering from recent record highs due to concerns over the U.S. election and interest rates favoring the dollar.
Despite the recent dip, gold remains higher for the week, with safe-haven demand expected to support prices in the coming days. Gold futures rose 0.3% to $2,724.70 an ounce, while December futures climbed 0.3% to $2,737.15 an ounce.
Gold Underpinned by Safe Haven Demand
The precious metal continues to hold its ground as safe-haven demand remains strong amidst uncertainties surrounding the U.S. presidential election and geopolitical tensions in the Middle East.
Increased safe-haven demand has kept traders inclined towards gold and other precious metals, despite the strength of the dollar. This trend is expected to persist as markets grapple with the prospect of a contested U.S. election and evolving geopolitical dynamics.
Other precious metals also saw gains on Thursday, with silver rising 0.7% to $1,037.80 an ounce and platinum climbing 0.6% to $34.050 an ounce.
Copper Prices on the Rise
In the industrial metals sector, copper prices saw an uptick on Thursday, with focus shifting to upcoming PMI readings from major economies.
Benchmark copper on the London Metal Exchange rose 0.7% to $9,581.50 a ton, while December copper futures climbed 0.7% to $4.3637 a pound. Traders are closely monitoring stimulus measures in China, with expectations of additional fiscal spending decisions following the National People’s Congress meeting later this month.
Analysis:
The global financial markets are currently experiencing fluctuations due to uncertainties surrounding the U.S. election, geopolitical tensions, and shifting interest rate expectations. Gold prices, a traditional safe-haven asset, have seen a slight recovery after hitting record highs. Traders are closely watching developments in the U.S. election and geopolitical landscape, which are likely to influence market sentiment in the near term.
Additionally, industrial metals like copper are also responding to economic indicators and stimulus measures, particularly in China. The outcome of key economic events and policy decisions will play a crucial role in shaping the future direction of these markets.