Safe-haven gold on track for best month in seven


31-10-2024 09:37 AM

Ammon News - Gold prices climbed to a record high on Thursday and were headed for their best month in seven on safe-haven demand ahead of the Nov. 5 U.S. presidential election, while investors awaited U.S. inflation report for cues on the Federal Reserve's rate path.

Spot gold was flat at $2,783.75 per ounce, as of 0536 GMT, after hitting a record high of $2,790.15 earlier in the session. Prices have firmed nearly 6% for the month so far.

U.S. gold futures dipped 0.2% to $2,794.90.

The U.S. election has entered its crucial final phase, with opinion polls too close to call a winner between Republican former U.S. President Donald Trump and Democratic Vice President Kamala Harris.

"Rise in gold looks a lot like one of the Trump trades, or effectively a hedge against greater deficit spending in the United States," said Kyle Rodda, financial market analyst at Capital.com.

Bullion is considered a safe investment during economic and geopolitical uncertainties and thrives in a low interest rate environment.

Investors are awaiting U.S. core personal consumption expenditures (PCE) data due at 1230 GMT. The September core PCE price index is expected to have increased 0.3% after August's 0.1% gain.

"Traders want to buy gold whether it rises or falls and that has kept retracements small and consolidations tight. And its trend seems poised to continue higher should PCE inflation come in at 0.2% m/m or less," said Matt Simpson, senior analyst at City Index.

U.S. weekly jobless claims data due later in the day and payrolls report on Friday are also on the radar.

Traders see a 96% chance that the Fed will deliver a quarter-point reduction in short-term borrowing costs next week.
Spot silver fell 0.7% to $33.57 per ounce, platinum shed 0.5% to $1,003.17, and palladium was down 1.3% to $1,132.23. All three metals were on track for monthly gains.

Manufacturing activity in biggest gold consumer China expanded in October for the first time in six months, an official factory survey showed, supporting policymakers' optimism that recent fresh stimulus will get the economy back on track.


Reuters




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