Gold hits record as rate cuts, election jitters mount
Make us a preferred source
Make us a preferred source on Google
The news: Gold reached a record high, rising 0.7% to USD2,739.50 ($4,100.86) per troy ounce, boosted by Middle East tensions and anticipated rate cuts by central banks, with investors seeking safety in the precious metal.
The numbers: Gold has risen 32% this year, with analysts expecting further gains, as investors seek safe-haven assets amid uncertainty over the US election. UBS has a one-year USD3,000 per troy ounce price target.
Silver prices also rose sharply, hitting their highest levels since late 2012 at USD34.06 per ounce.
The context: Despite a dip in physical demand from China, central bank gold purchases hit a record 483 tonnes in the first half of the year, according to the World Gold Council, the industry body.
Global investors have also steadily increased their holdings, as geopolitical risks continue to fuel the rally. Traders are pricing in a 90% chance of a quarter-point interest rate cut by the Federal Reserve in November, according to Reuters, adding further momentum to gold's rise.
The sources: Reuters , The Financial Times
