Gold surged to a new record on Monday as safe-haven demand continued to bolster prices, with traders closely watching the rising tensions in the Middle East and the narrowing US election race.
Bullion increased by 0.3%, reaching an all-time high of $2,729.30 per ounce, slightly surpassing last week’s peak. Silver also benefited from the bullish trend, trading at its highest level since 2012.
The focus remains on geopolitical risks in the Middle East, with Israel preparing its next move against Iran following a Hezbollah drone explosion near Prime Minister Benjamin Netanyahu’s private residence on Saturday. While US President Joe Biden has pushed for the resumption of cease-fire talks in the region, hard-line Israeli factions oppose any concessions.
Meanwhile, traders are adjusting portfolios ahead of the upcoming US election on November 5, with polls indicating a tight race between Donald Trump and Kamala Harris. Investors often turn to gold as a safe asset during times of political and economic uncertainty.
Vivek Dhar, an analyst at the Commonwealth Bank of Australia, predicted that gold futures could average $3,000 an ounce in the fourth quarter of 2025, driven by the Federal Reserve’s ongoing rate-cutting cycle. A weaker US dollar, due to these cuts, would further support gold prices by making it cheaper for global buyers who trade in the greenback.
Gold has been one of 2024’s top-performing commodities, rising over 30% this year. Optimism surrounding rate cuts, initiated by the Fed’s easing cycle last month, has fueled the latest rally, while strong central bank demand continues to provide a solid foundation for gold prices.
As of 9:57 a.m. in Singapore, spot gold had risen 0.2% to $2,727.15 an ounce. The Bloomberg Dollar Spot Index remained in decline, with silver, palladium, and platinum all showing gains as well.
