Gold prices are rising, near a record high after a heated presidential debate by Investing.com
Investing.com– Gold prices rose in Asian trade on Wednesday and were close to record highs as a heated debate between presidential contenders Kamala Harris and Donald Trump cast doubt on the 2024 election.
Anticipation of inflation readings in the US also kept investors biased towards safe havens such as bullion and the Japanese yen, while the dollar fell after the debate.
The decline in US stock index futures also reflected a decline in risk appetite.
rose 0.1% to $2,519.73 an ounce, while December expiration rose 0.2% to $2,548.45 an ounce at 00:19 ET (04:19 GMT).
Dollar retreats, gold advances after Harris-Trump debate
Gold's gains came on the heels of a weaker dollar after the presidential debate late on Tuesday.
Both candidates have engaged in a heated debate over personality and policies, and the debate is fueling expectations for the hotly contested 2024 presidential race.
But the idea has raised uncertainty about the 2024 election, especially given that both Harris and Trump have presented very different economic plans.
Gold benefited from some safe demand after the debate, with prices trading just below a record high of $2,532.05 an ounce.
CPI data is expected to provide additional indicators of the rate
Caution was also in place ahead of a US inflation reading due later on Wednesday.
The reading is expected to show further cooling in the US currency, which may give the Federal Reserve more confidence to start cutting interest rates.
Wednesday's inflation data comes just a week before, when the central bank is expected to cut interest rates by at least 25 basis points.
But recent signs of recovery in the US economy have seen traders reduce bets on a big, 50 basis point cut in interest rates next week. The idea has rattled global financial markets this past week, while keeping gold shy of new highs.
Other precious metals rose on Wednesday. rose 0.1% to $945.50 an ounce, while rose 0.6% to $28.777 an ounce. Both of these instruments have been left with gold in recent months.
Copper rises, but China jitters continue
Among industrial metals, copper prices advanced as they recovered some of the recent losses. But concerns about China – particularly the country's declining demand for copper, and a potential trade war with the west – kept sentiment about copper skittish.
Benchmark on the London Metal Exchange rose 0.7% to $9,086.0 a tonne, while one-month was up 0.6% to $4.1285 a pound.
US lawmakers appeared to be preparing a raft of new restrictions on Chinese industries, which Beijing has criticized. The passage of these measures could herald a renewed trade war with the west, especially after the US and its allies recently introduced tough import duties on Chinese electric vehicles.
