Gold prices don reach new record high on Monday, driven by escalating conflicts in the Middle East and the uncertainty surrounding the upcoming US presidential election. The price of gold surge to $2,729 per troy ounce, marking a new all-time high.
The tension in the Middle East, especially with Israel‘s ongoing discussions about further actions against Iran, dey significantly influence market sentiment. Despite calls from US President Joe Biden for a ceasefire, Israel’s reluctance to make concessions has only added to the geopolitical tensions affecting global markets.
As the US election day on 5 November approach, investors dey reposition their portfolios, favouring the stability and security that gold provides during political uncertainty. Preliminary polls indicate that the election could be one of the closest in recent history, further enhancing gold’s appeal as a protective investment.
In another development, China‘s central bank, the People's Bank of China, cut its benchmark lending rates on Monday in a bid to boost economic growth. The one-year loan prime rate was reduced to 3.10% from 3.35%, while the five-year loan prime rate was lowered to 3.60% from 3.85%. This move is part of broader efforts to stimulate China’s economy, which recently experienced its slowest growth in 18 months.
The rate cut in China also impact other precious metals, with silver reaching its highest price since 2012 and copper prices rising following the rate cut. Silver futures rally 3.1% to $34.328 an ounce, while copper prices on the London Metal Exchange rose 1.2% to $9,746.0 a ton.
Market analysts now dey revise their expectations for gold upwards, with some speculating that prices could reach $3,000 per troy ounce by Q4 2025. This optimistic outlook is further supported by the surge in interest in other precious metals due to similar bullish sentiments in the market.
