Summary:
Gold prices hit a record high on Wednesday due to uncertainties from the US election and the Middle East conflict, despite a strong dollar.
Gold prices hit a record high on Wednesday thanks to uncertainties surrounding the US presidential election and the Middle East conflict, though the US dollar was near its three-month high.
Bullion prices are expected to continue rising into 2025, driven by favorable interest rates and ongoing geopolitical tensions, according to a Reuters poll. Gold has already increased by around 35% this year.
The recent attack marks Israel's first public acknowledgment of strikes on Iran, escalating their long-standing shadow war and leading some in Iran to question their deterrence capabilities.
Polls show the race between Trump and Harris remains too close to call, with both the U.S. dollar and Treasury yields gaining support from Trump's lead in swing states.
In India, buyers are ignoring record high gold prices, purchasing ahead of upcoming festivals despite a cooling stock market, which could further boost global prices. However, demand in China, the world's largest gold consumer, fell by over 20% in Q3 due to high prices and a sluggish economy, particularly affecting jewelry consumption.
Bullion has entered the overbought territory, so a pullback towards $2,860 is likely. But the uptrend is expected to continue with the price moving further away from 50 SMA.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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