Oct 18, 2024 09:02 AM IST
Gold hit a record $2,698.50 as investors sought safety due to escalating Middle East conflicts, despite mixed US economic data.
Gold reached a record high as escalating Middle East conflicts saw investors flock to safety, even as mixed data on the US economy dashed hopes for large rate cuts by the Federal Reserve this year.
Bullion rose as much as 0.2% to $2,698.50, topping Thursday’s all-time high by about a dollar, as markets reacted to Israel’s killing of Hamas leader Yahya Sinwar — the architect of the Oct. 7 attack that’s triggered the year-long war in Gaza.
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Prime Minister Benjamin Netanyahu said Israel would keep fighting until all the hostages seized by Hamas last year are free, even as President Joe Biden said it was time for the war to end. Investors typically seek safety in gold in times of geopolitical and economic uncertainty.
Haven demand outweighed macro headwinds that would normally weigh on the precious metal, after US reports on Thursday diminished bets on the scale of Fed easing. Retail sales strengthened in September by more than forecast and jobless claims unexpectedly fell in a separate print, reinforcing the view the economy is nowhere near a recession. Higher interest-rate environments typically pressure non-yielding gold.
Gold was about 1.5% higher for the week, as investors repositioned portfolios ahead of the US election on Nov. 5. With both candidates posing different risks to the economy, gold is likely to see further support — no matter whether Donald Trump or Vice President Kamala Harris wins.
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Bullion — up about 30% this year — is one of 2024’s strongest performing commodities. Rate-cut optimism fueled the most recent gains as the Fed kicked off its easing cycle last month. Strong central bank purchases have also supported gold.
Spot gold was trading at $2,697.43 an ounce as of 8:15 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.1%, following four consecutive gains. Silver and palladium climbed, while platinum was steady.
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