Gold Prices Slip, but Remain Near Record Highs
Gold prices dipped slightly in Asian trade on Friday, maintaining proximity to the record highs reached earlier in the week. The ongoing tight U.S. presidential election added to the uncertainty, leading traders to lean towards safe-haven assets. Despite hitting new highs, gold struggled to sustain its peak levels due to a stronger dollar and higher Treasury yields. However, the precious metal was still on track for modest weekly gains, marking its third consecutive week of growth.
Additional Insight:
The U.S. presidential election and escalating tensions in the Middle East are key factors driving safe-haven demand for gold, highlighting the importance of geopolitical events on precious metal prices.
Election Uncertainty and Middle East Tensions Support Gold Demand
The uncertainty surrounding the U.S. election, with less than two weeks remaining until the vote, contributed to the safe-haven appeal of gold. Recent polls and prediction markets showing Republican nominee Donald Trump gaining ground over Vice President Kamala Harris added to market jitters. The closely contested race kept investors cautious, fueling the demand for gold as a hedge against risk.
Furthermore, escalating tensions in the Middle East, particularly between Israel and Iran, added to the geopolitical concerns. Israel’s strong rhetoric against Iran and the looming possibility of an attack on Iranian facilities raised fears of an intensifying conflict. The lack of progress in peace negotiations between Israel, Hamas, and Hezbollah further heightened the geopolitical risks, contributing to the support for safe-haven assets like gold.
Copper Prices Decline Amid China Stimulus Uncertainty
In the industrial metals sector, copper prices fell on Friday, marking a fourth consecutive week of losses. Pressure from a stronger dollar and uncertainties surrounding Chinese stimulus measures weighed on the red metal. Despite China’s previous announcements of significant stimulus measures, traders remained cautious, awaiting more clarity on the timing and scale of the planned interventions.
Copper Slump Continues
Among industrial metals, copper prices decline on Friday, marking four straight weeks of losses as uncertainties loom over Chinese stimulus plans and dollar strength put pressure on the red metal.
