Gold Hits Record High of $2,800 Amid US Election, Middle East Tensions
TLDR
- Gold futures hit a new record at $2,801.70 driven by U.S. presidential election uncertainty and Middle East tensions.
- Despite bearish factors, gold's year-to-date gain surged to 34%, making it one of 2024's best-performing assets.
- Analysts anticipate gold to sustain upward momentum due to election risks and potential Federal Reserve rate cuts.
Gold futures set a new record Wednesday, briefly reaching $2,801.70 an ounce on the CME, driven by investor uncertainty surrounding the U.S. presidential election and Middle East tensions.
Despite traditionally bearish factors like rising bond yields and a stronger dollar, gold’s year-to-date gain has surged to approximately 34%, solidifying its place among the best-performing assets of 2024.
The rally reflects heightened market positioning ahead of the election, with analysts attributing gold’s strength to potential Federal Reserve rate cuts and geopolitical risks. Analysts think gold should retain its upward bias as election risks persist and rate-cut expectations hold. Global gold demand surged by 5% in Q3, with the World Gold Council reporting volumes hitting a record 1,313 tons.
You can follow Daba’s reporting on Africa on WhatsApp. Sign up here
Key Takeaways
Gold’s appeal as a safe haven asset has intensified due to economic and geopolitical uncertainties. Analysts suggest that a Trump re-election may bring policy disruptions, including tariffs and inflationary pressures, which support gold’s bullish outlook. U.S. job data and consumer confidence metrics released Tuesday further reinforced this sentiment. Investors are almost fully pricing in a 25-basis-point Fed rate cut in November, signaling sustained demand for gold, especially as markets brace for election-driven volatility. The metal’s strong performance in 2024 highlights its role in diversifying portfolios amid inflation concerns and geopolitical risks.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.