Gold prices soared to a record high as investors sought safe-haven assets while monitoring the upcoming U.S. election and ongoing conflicts in the Middle East.
Bullion edged up to $2,750.34 on Wednesday, beating Tuesday’s peak by about $1, with geopolitical risks taking center stage as traders focused on a tight US presidential race and concerns that conflicts between Israel and Iran may escalate into a wider war, News.Az reports, citing foreign media.
Bullish sentiment has also spilled over to the wider precious metals complex, with silver within striking distance of $35 an ounce, which it last reached in 2012.
The flight to safety has helped offset pressure from a selloff in US government bonds in recent days, as traders bet on a slower pace of easing by the Federal Reserve.
Normally, higher yields and tight monetary policy settings tend to weigh on the precious metal, as it doesn’t pay interest.
The precious metal has surged by about a third this year, hitting successive highs, with the rally intensifying in the last couple of months as the Fed pivoted to cutting interest rates. Money managers have also added to the strength of the rally, with hedge funds increasing net-long positions in gold in recent sessions and investors adding to exchange-traded fund holdings.
Spot gold was little changed at $2,750.22 an ounce as of 12:37 p.m. in Singapore. The Bloomberg Dollar Spot Index edged up. Silver fell, palladium was steady, while platinum rose.