Gold Reaches Record High as Investors Seek Safe Haven Amid Global Uncertainty

Highlights:

• Record High: Gold surged to a new peak of $US2,750.34 per ounce, driven by global geopolitical tensions and U.S. election uncertainties.
• Silver Surge: Bullish sentiment extended to silver, which is approaching $US35 an ounce, a level not seen since 2012.
• Future Outlook: Analysts at Standard Chartered expect gold to average $US2,800 in Q4 2024 and rise to $US2,900 in early 2025, reflecting strong demand for safe-haven assets.

Gold Hits Record Peak
Gold has surged to an all-time high, driven by increasing demand for safe-haven assets as geopolitical tensions rise and uncertainties surrounding the upcoming U.S. election unfold. At the time of writing, gold reached $US2,750.34 per ounce on Wednesday, surpassing Tuesday's peak by around $US1. Investors have flocked to gold, fearing an escalation in the conflict between Israel and Iran and keeping a close watch on the tight U.S. presidential race.

Bullish Sentiment in Precious Metals
The positive sentiment has extended beyond gold, with silver nearing $US35 an ounce, a level last seen in 2012. As concerns grow over global instability, traders are increasingly turning to precious metals to shield their portfolios. The continued demand for gold comes despite a recent sell-off in U.S. government bonds, which are typically seen as a safer bet during times of uncertainty.

Gold’s Resilience Amid Bond Market Shifts
Despite pressure from rising bond yields, gold has shown resilience, benefiting from traders’ expectations of slower monetary easing by the Federal Reserve. Historically, higher yields weigh on gold prices since the metal doesn’t pay interest. However, the current market is defying that trend as traders prioritize the security that gold offers in volatile times.

Analyst Expectations for Gold Prices
Suki Cooper, an analyst at Standard Chartered, noted that gold's upward movement, despite the broader macroeconomic environment, reflects strong underlying flows. She expects further upside potential in the coming weeks, with the bank forecasting gold to average $US2,800 an ounce in the fourth quarter of 2024, and prices potentially reaching $US2,900 in early 2025.

This trend underscores gold's enduring role as a safe-haven asset amid global uncertainty.

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