Gold rallies to record with tight US election and data in focus

Spot gold was 0.4% higher at $2 683.63 an ounce as of 7:49 a.m. in London.

Gold climbed to a record ahead of US data prints due later Thursday, with traders also monitoring an increasingly tight presidential race that’s driven demand for haven assets.

Bullion climbed as much as 0.5% to hit $2 685.74 an ounce, topping last month’s peak by a few cents. The precious metal is up about 1% since the start of the week, with investors repositioning portfolios ahead of the US election that’s less than three weeks away. With both candidates posing different risks to the economy, gold will likely see further support — no matter whether Donald Trump or Kamala Harris win.

Traders are now shifting focus to incoming US retail sales and jobless figures for further clues on the pace of Federal Reserve easing this year. Initial unemployment claims likely remained elevated in the week ended October 12, while consumer spending probably grew moderately in September, according to Bloomberg Economics. Lower rates tend to benefit non-interest bearing bullion.

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The precious metal — up 30% so far this year — is one of the strongest performing commodities in 2024. Rate-cut optimism has fuelled the most recent gains as the Fed kicked off its easing cycle last month, though traders have in recent weeks pared expectations on the size and scope of this year’s rate cuts following mixed reports on the US economy. Strong central bank purchases and heightened geopolitical tensions have also supported gold.

Spot gold was 0.4% higher at $2 683.63 an ounce as of 7:49 a.m. in London. The Bloomberg Dollar Spot Index was flat, following three consecutive gains. Silver and palladium edged lower, platinum rose.

© 2024 Bloomberg

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