By Rahul Paswan
(Reuters) – Gold costs rose on Tuesday and hovered close to a file excessive hit within the earlier session amid uncertainties across the U.S. election, ongoing Center East tensions, and expectations of central banks’ rate of interest cuts.
rose 0.4% to $2,729.91 per ounce by 0303 GMT. U.S. rose 0.2% to $2,744.40.
Gold hit its all-time excessive of $2,740.37 on Monday and has gained about 32% thus far this 12 months.
“A confluence of tailwinds remains in place (for gold), which includes its status as an attractive hedge against U.S. election uncertainties and geopolitical risks, resilient central banks’ demand and room for catch-up ETF buying,” IG market strategist Yeap Jun Rong mentioned.
“Buyers may seem to eye the $2,800 level next, as political uncertainties will persist as the election draws nearer.”
With the U.S. presidential election simply over two weeks away, former President Donald Trump and Vice President Kamala Harris are caught in a knife-edge battle to win over a number of the extra aggressive states.
Not too long ago, Israel has assassinated the leaders of Hezbollah in Lebanon and of Hamas in Gaza, whereas displaying no signal of reining in its floor and aerial offensives.
Elsewhere, merchants now see a 91% probability of 1 / 4 foundation level reduce by the Fed in November, in line with the CME Fedwatch software.
Gold’s rally comes regardless of a firmer U.S. greenback and yields. Benchmark 10-year Treasury yields rose to a 12-week excessive within the final session, whereas the U.S. greenback clung to a two-and-half-month excessive on Tuesday. [USD/] [US/]
Spot silver rose 0.5% to $33.93 per ounce after hitting its highest since late-2012 within the final session.
Citi Analysis revised its 6 to 12-month forecast for silver costs upward to $40 per ounce from $38 per ounce.
Platinum rose 0.3% to $1,006.35 per ounce. Palladium added 0.6% to $1,057.65.
