The price of gold exceeded $2,470, setting a new all-time high
Gold set another all-time high amid rising expectations for a Federal Reserve rate cut and rising bets among some traders on a second Donald Trump presidency.
Spot gold rose 1.7% to $2,464.39 per ounce. 2:15 pm ET, having previously reached a new record of $2,466.02 per ounce. US gold futures also rose 1.7% to $2,470.10 an ounce in New York.
Bullion is now nearly 20% higher for the year, helped by expectations of Fed policy easing and significant purchases by central banks. Geopolitical tensions have also supported the metal, which is traditionally seen as a safe-haven asset.
“Optimism about US interest rate cuts amid mounting economic data supporting a Fed turnaround is supporting gold.”
Trump Momentum
The Candidacy Trump's presidential bid gained momentum after a failed attempt on his life over the weekend and a judge dropped the criminal case against him.
But a Trump presidency could have potentially both positive and negative consequences for gold, says Giovanni Staunovo , commodities analyst at UBS Group AG. That could lead to "tax cuts, support a shift to equities and ultimately limit faster rate cuts," he warned.
On the other hand, tax cuts would impact the U.S. fiscal balance, which could weaken the dollar's status and push buyers toward safe-haven assets such as gold, Staunovo said.