Gold prices soared to an all-time high on Wednesday, driven by growing geopolitical tensions and economic uncertainties. Investors turned to the precious metal as a safe haven amid ongoing conflicts in the Middle East and concerns surrounding the upcoming U.S. presidential election.
Spot gold surged to a record $2,749.07 per ounce before easing slightly by 0.3% to $2,738.79 as of 03:13 GMT, following some profit-taking. Meanwhile, U.S. gold futures dipped 0.2% to $2,753.40.
Despite a strong U.S. dollar, which remains near a two-month peak, gold’s rally continued. Both assets are benefiting from safe-haven flows as investors brace for potential market shocks from next month’s U.S. election and the ongoing geopolitical risks.
“Gold and the dollar are enjoying safe-haven buying flows due to event risks in the form of next month’s U.S. election and ongoing geopolitical risks,” said Tim Waterer, chief market analyst at KCM Trade, in a note to clients.
In the latest U.S. polls, Democratic Vice President Kamala Harris held a narrow lead over former President Donald Trump, with 46% to 43%, according to a Reuters/Ipsos survey. Political uncertainty in the U.S., compounded by high-stakes elections, continues to drive market volatility.
Meanwhile, in the Middle East, Israel confirmed the death of Hashem Safieddine, the designated successor to the late Hezbollah leader Hassan Nasrallah, who was killed last month. These developments are further fueling global uncertainties, increasing gold’s appeal as a hedge against risk.
Gold has climbed more than 33% this year, scaling multiple records, largely fueled by global instability and accommodative monetary policies. Although the Federal Reserve initiated a rate-cut cycle with a 50-basis-point cut last month, market expectations for another large cut in November have diminished. Traders now foresee a 92% chance of a more modest quarter-basis-point cut, according to the CME FedWatch tool.
Other precious metals saw mixed results. Spot silver slipped 0.7% to $34.58 per ounce, after reaching a high of $34.87 in the previous session—the highest since 2012. Platinum rose 0.5% to $1,033.75, while palladium fell 0.2% to $1,073.80.
As uncertainties persist, the demand for gold as a safe-haven asset is likely to remain strong, with the metal continuing to serve as a hedge against global risks.