Gold prices saw a slight increase during Asian trading on Thursday, though they were still recovering from recent declines from record highs due to concerns over the U.S. election and changing interest rate expectations, which have strengthened the dollar.
Despite losses on Wednesday, gold remained up for the week, supported by strong safe-haven demand expected to bolster prices in the coming days.
Spot gold rose 0.3% to $2,724.70 an ounce, while December futures also increased 0.3% to $2,737.15 an ounce by 00:23 ET (04:23 GMT). Earlier in the week, spot prices reached a record high of $2,758.53 an ounce.
The yellow metal continued to benefit from safe-haven demand as tensions rose from a tightly contested U.S. presidential election and escalating conflicts in the Middle East.
Israeli officials issued stern warnings against Iran on Wednesday, heightening fears that an Israeli strike could escalate the conflict further. Israel has also intensified its military actions against Hamas and Hezbollah.
In the U.S., Republican nominee Donald Trump appears to be gaining an advantage over Vice President Kamala Harris in the upcoming election, less than two weeks away. However, markets anticipate a highly competitive race, maintaining uncertainty about the political landscape.
This increased demand for safety has kept traders leaning towards gold and other precious metals, helping them withstand the dollar’s strength as expectations grow that interest rates will decrease more slowly.
Other precious metals were also up on Thursday and maintained gains for the week. Platinum futures increased by 0.7% to $1,037.80 an ounce, while silver futures rose 0.6% to $34.050 an ounce.
Copper prices climbed on Thursday as attention shifted to upcoming purchasing managers’ index (PMI) reports from the U.S. and the eurozone.
On the London Metal Exchange, benchmark copper futures rose 0.7% to $9,581.50 per ton, while December copper futures also increased by 0.7% to $4.3637 per pound.
Both contracts had experienced losses earlier in the week as traders awaited further signals regarding stimulus measures from China, the top importer. A meeting of China’s National People’s Congress is scheduled for later this month, during which the government is expected to outline plans for increased fiscal spending.
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