Gold’s luster sparkled even more on Wednesday, with a record New York spot price closing at $2,788.10 per ounce, up $13.50 from the previous record-setting close on Tuesday as hot spots in the world grew more heated and the U.S. presidential election neared. Investors look to gold in uncertain times.
The Comex futures price for December delivery closed at $2,794.40, up $9 from Tuesday, reaching closer to the $2,800 mark after the price began to surge in early March. In total, gold’s price is up over 33% since New Year’s Day 2024, according to CBS News.
The spot silver price was at $33.76 on Wednesday, down 65 cents.
Reasons for Gold’s Upward Trend
“I think it’s got room to go up. When you see the conflicts around the world … people tend to gravitate toward gold and silver,” said Darcy Marud, chief executive officer of Western Exploration, which has an exploration project 80 miles north of Elko.
Additional Insight: Geopolitical tensions and global uncertainties often drive investors towards safe-haven assets like gold, causing an increase in prices.
Marud cited the Middle East crisis, North Korean troops in Russia to fight in Ukraine, and the election cycle as factors contributing to gold’s appeal. Vice President Kamala Harris is in a close race with Republican former President Donald Trump for president, with election day just a week away on Tuesday.
Additional Insight: Elections and geopolitical conflicts can intensify market volatility, making gold more attractive to investors seeking stability.
Investing in Gold
Investors looking at gold can buy gold bars or coins, buy gold through exchange-traded funds, or they can purchase shares in gold producers. CBS News wrote gold mining stocks can be more volatile because of production levels, operational risks, and management, but “investing in gold stocks could be a smart decision given today’s unusual gold market.”
Implications on Gold Mining Companies
Shares of companies with gold production in Nevada were mixed following Tuesday’s jump. One of the two companies that form Nevada Gold Mines — Barrick Gold Corp. — saw its shares close at $20.28, up 30 cents, on Tuesday, while shares of the other joint venture partner — Newmont Corp. — were down 54 cents, with shares closing at $47.82.
Additional Insight: Company performance can be influenced by various factors such as production costs, earnings reports, and market dynamics.
Market Insights and Predictions
“Gold prices have benefited from robust safe-haven demand amid persistent geopolitical tensions, expectations of monetary policy easing, and mounting uncertainty surrounding the U.S. presidential election,” Tito Iakopa, commercial director at FlowCommunity, said in market commentary cited by MarketWatch. “These fundamental factors, combined with strong physical demand, continue to provide support for gold as elevated global risks push prices higher.”
Additional Insight: Market sentiment and economic factors play a significant role in determining the trajectory of gold prices, highlighting the importance of staying informed about global events and financial policies.
