Gold soared by 1% on October 22, reaching a historic high due to a combination of factors that fueled its rise. Bullion’s surge is intensified by safe-haven demand, which is triggered by the uncertainties surrounding the U.S. elections and the ongoing Middle East conflict, along with expectations of further monetary easing.
Spot gold increased 0.9%, hitting $2,746.69 per ounce by 1:40 p.m. ET (1740 GMT) after reaching an unexpected peak of $2,748.23 earlier in the day. Meanwhile, U.S. gold futures closed 0.8% higher at $2,759.80.
Bullion is often seen as a hedge against political and economic risks. Its value increased by more than 33% in 2024, achieving several record highs. Moreover, lower interest rates have enhanced the appeal of gold, making it a safe investment.
Peter A. Grant, vice president and senior metals strategist at Zaner Metals, mentioned that geopolitical tensions continue to drive gold’s rise. He also noted that with the U.S. election approaching and the race remaining highly competitive, the political uncertainty is further boosting interest in gold as a safe investment.
Stock exchange chart of gold price on 10.24.2024
According to Grant, gold can reach a price of $3,000 per ounce by the end of 2024 if tension in the Middle East isn’t lowered. However, it is also possible that this line can be crossed in the first quarter of next year. Another factor pushing the rally is the worldwide easing policies of central banks. A Reuters/Ipsos poll indicated that Democratic U.S. Vice President Kamala Harris holds a narrow lead of 46% to 43% over Republican former President Donald Trump.
The Democratic Party changing its nominee has contributed to uncertainty regarding the election outcome, which bolstered gold prices. Currently, the Relative Strength Index (RSI) for gold is at 74 and from the technical point of view it indicates that the gold prices have entered “overbought” territory. It signals that further increases may be tempered by potential market corrections.
The highest live price of silver in 12 years was recorded earlier in the session. Spot silver rose to $34.84 per ounce, that is for 3.2%. However, experts expect silver to increase above $35 before election day if the favorable conditions supporting precious metals persist. Platinum rose about 2.8% to $1,031.90 per ounce. Palladium added 2.9% to $1,081.06.
