Gold prices touch new record high as US election, economic data picks up on Investing.com
Investing.com– Gold prices rose on Tuesday, trading near record highs as the 2024 presidential election and uncertainty ahead of the next data print keep safe-haven demand in play.
By 07:00 ET (11:00 GMT), it was up 0.3% at $2,750.25 an ounce, while December expiration was up 0.3% at $2,762.75 an ounce.
Gold plated election, jitters level
The yellow metal has been strengthened by the uncertainty associated with the expectations of a tight race for the US president, where Donald Trump and Kamala Harris have gone down in the hotly contested election, which will be voted on November 5.
Recent polls and forecast markets have shown Trump making some gains over Harris, which is helping to boost gold given growing concerns about the US debt crisis.
The US deficit reached $1.8 trillion in the fiscal year ending in September, accounting for 6% of GDP. If Trump wins and a “red tide” occurs, the US debt could increase by $7.5 trillion over the next decade—more than double the $3.5 trillion increase proposed by Harris.
Uncertainty over the outcome, which will determine US politics for the next four years, has kept traders heavily biased towards safe havens such as the dollar and gold.
Haven demand was also boosted by anticipation of a series of key economic readings this week, which are likely to contribute to the Federal Reserve's interest rate plans.
Tuesday is the release of , before third quarter data is released on Thursday. data- the Fed's preferred inflation gauge- and the data will be available on Friday, both prints come a few weeks before the Fed meeting.
Other precious metals rose on Tuesday. rose 1.3% to $1,060.60 an ounce, while rose 1% to $34.325 an ounce.
Copper dips, China data pending
Among industrial metals, copper prices rose again as investors awaited further economic indicators from China, the world's largest consumer of the red metal.
Benchmark on the London Metal Exchange fell 0.9% to $9,644.0 a tonne, while December fell 1.3% to $4.4180 a pound.
Copper was nursing heavy losses in October as recent stimulus measures from Beijing failed to inspire confidence in the economic recovery.
Now the focus was on data from China, due on Thursday, to get more information on the economy.
(Ambar Warrick contributed to this article.)
