Gold prices rose during today’s trading on anticipation of the results of the US elections scheduled for November 5, while the dollar stabilized close to levels recorded 3 months ago, but oil rose, driven by news of a decline in US fuel stocks.
gold
Gold reached its highest level ever today as investors turned to the yellow metal as a safe haven about a week before the US presidential elections, while they awaited economic data for indications regarding the Federal Reserve (US central bank) decision on interest rates.
An ounce of gold rose in spot transactions to $2,789.89 during today’s trading before falling to $2,783.81 at the time of writing this report, which thus remains up 0.33%.
US gold futures contracts increased to 2801.70 during today’s trading before falling to $2794.40.
Reuters quoted Kelvin Wong, chief market analyst in the Asia-Pacific region at OANDA, as saying, “Gold is closely linked to the outcome of the US elections. In the short term, gold in spot transactions will face resistance at the $2,800 level, and after that at the $2,826 level.” .
The election campaign scheduled for next November 5 has entered its final stage, and the latest opinion polls indicate a fierce competition between Donald Trump and Kamala Harris.
Among the other factors that contributed to gold’s record rise were expectations for further decisions to reduce US interest rates, and the low interest rate in reducing the alternative cost of possessing gold that does not generate a return.
A quarter-point cut in short-term borrowing costs is expected next week, as a US Department of Labor report showed that job opportunities fell in September to their lowest level since January 2021.
“If we see hot inflation numbers or a strong jobs report, there could be a divergence in gold prices,” Wong said.
Moreover, Goldman Sachs lowered its gold price forecast from $3,080 to $3,000 by December 2025, but maintained its bullish stance.
As for other precious metals, their performance was as follows:
- Silver in spot transactions fell 0.72% to $34.21 per ounce.
- Palladium fell more than 2% to $1,183.10 an ounce.
- Spot platinum contracts fell 1.26% to $1,037.74.
Dollar
The dollar hovered near its highest levels in 3 months in a week full of macroeconomic data that may reveal the path of US monetary policy.
The dollar index, which measures the performance of the US currency against a basket of 6 major currencies, fell at 104.09, after reaching its highest level since July 30 at 104.63 yesterday, Tuesday, before ending the day almost stable.
Increased speculation in the markets and some betting platforms that Republican Party presidential candidate Donald Trump will win the elections has contributed to strengthening both the dollar and US bond yields in the past few days, as his policies related to tariffs and immigration are considered inflationary.
This also helped in the rise of the cryptocurrency Bitcoin to nearly its highest levels ever recorded in March at $73,803.25, as Trump pledged to make the United States “the capital of cryptocurrencies on the planet.”
Bitcoin was trading in the latest transactions at about 72,465.54 dollars, after reaching 73,609.88 dollars in the previous session.
The dollar fell against the yen by 0.22% to 153.01, after retreating from a 3-month peak of 153.87 yesterday, Tuesday.
The euro was higher at $1.0842 ahead of GDP data across Europe later in the day, which may shed light on whether… what The ECB would have chosen to cut interest rates by 25 or 50 basis points at its next meeting in December/December.
Oil
Oil prices rose today after declining in the previous two sessions, amid expectations of a decline in fuel stocks in the United States, and despite markets evaluating the effects of a possible ceasefire between Israel and Hezbollah in Lebanon and an increase in OPEC Plus supplies of crude oil.
Brent crude futures rose 91 cents, or 1.28%, to $72.03 per barrel, and US West Texas Intermediate crude futures fell 90 cents, or 0.84%, to $68.07 per barrel.
Market sources said yesterday, Tuesday – citing data from the American Petroleum Institute – that crude oil and fuel stocks in the United States decreased last week.
The sources, who requested to remain anonymous, added that crude stocks fell by 573,000 barrels in the week ending October 25, gasoline stocks fell by 282,000 barrels, while distillate stocks fell by 1.46 million barrels.
Nine analysts polled by Reuters expected crude inventories to rise by 2.2 million barrels.
Prices fell for the second session in a row yesterday, Tuesday, when a reporter from Axios said – via the X social media platform – that Israeli Prime Minister Benjamin Netanyahu will hold a meeting soon with a number of ministers, army commanders, and heads of intelligence services to discuss a diplomatic solution to the situation in Lebanon.
Axios quoted Israeli and American officials as saying that it is expected that a ceasefire agreement will be reached between Israel and Hezbollah within a few weeks.
Source : Reuters + CNBC + Websites
