Global uncertainties push safe-haven gold to record high

News

Gold prices surged to a record high on Wednesday as the conflicts in the Middle East and uncertainty surrounding the upcoming U.S. election spurred demand for safe-haven assets.

FUNDAMENTALS

* Spot gold was little changed at $2,746.25 per ounce, as of 23:45 GMT, after hitting its highest level at 2749.07 earlier in the session.

* U.S. gold futures were 0.1% higher to $2,761.4.

* Democratic U.S. Vice President Kamala Harris held a marginal 46% to 43% lead over Republican former President Donald Trump, a new Reuters/Ipsos poll found.

* Israel on Tuesday confirmed it had killed Hashem Safieddine, the apparent heir to Hezbollah leader Hassan Nasrallah, who was previously killed in an Israeli attack targeting the Iran-backed Lebanese militant group. * Bullion is considered a hedge against geopolitical and economic uncertainties and it has gained over 33% this year, scaling multiple records. * Elsewhere, the odds that the U.S. Federal Reserve will deliver a quarter-point cut at its Nov. 7 meeting are at 91.5%, according to CME’s FedWatch tool.

* Meanwhile, the U.S. economy will continue to provide most of the thrust for global growth through the balance of this year and in 2025, the International Monetary Fund said on Tuesday.

* Spot silver fell 0.3% to $34.71 per ounce, after hitting its highest level since late 2012 at $34.87 in the previous session.

* Platinum rose 0.1% at $1,030 and palladium gained 0.4% to $1,079.75.

* Elsewhere, China’s latest stimulus measures will not meaningfully boost domestic demand, leaving a major source of trade friction intact, the U.S. Treasury Secretary and International Monetary Fund Chief Economist Pierre-Olivier Gourinchas said. China is a key metals consumer.

DATA/EVENTS (GMT)

0500 Japan Chain Store Sales YY Sept

1400 EU Consumer Confid. Flash Oct

1400 US Existing Home Sales Sept

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