Market Dynamics
Gold prices reached a record high, driven by geopolitical tensions in the , a tight election race, and expectations of interest rate cuts by central banks. Spot gold rose to $2,729.91 per ounce, while U.S. gold futures climbed to $2,744.40.
The ongoing conflict in the Middle East, particularly 's actions against and , has increased demand for gold as a safe-haven asset. This demand is further fueled by the upcoming U.S. , adding to the metal's appeal.
Economic Indicators and Forecasts
Central banks, including the and the , have initiated easing cycles, contributing to the surge in gold prices. The Fed's anticipated rate cut in November and China's recent mortgage rate cuts are key factors.
Analysts and traders foresee continued gains in gold prices, with some predicting a rise to $2,800 per ounce as political and economic uncertainties persist. The 's survey suggests a bullish outlook, expecting prices to reach $2,917 an ounce by late October 2025.