Investing.com– Gold prices rose in Asian trade on Tuesday, approaching record highs as the 2024 presidential election looms and uncertainty surrounding upcoming economic data releases continues to support safe haven demand.
The yellow metal managed to recover all its losses from the previous session, as concerns over the Middle East conflict eased, causing gold to pull back slightly from recent peaks. Despite this, safe haven demand remained strong due to expectations of a close U.S. presidential race and the impact upcoming economic data could have on interest rates.
Gold buoyed by election, rate jitters
The upcoming election between Donald Trump and Kamala Harris is expected to be closely contested, with voting scheduled for November 5. While recent polls have shown Trump gaining ground over Harris, analysts still anticipate a tight race. The uncertainty surrounding the election outcome, which will shape U.S. politics for the next four years, has kept traders inclined towards safe havens like the dollar and gold.
The anticipation of key economic releases this week, as well as the upcoming Federal Reserve meeting, has further boosted demand for safe assets. Third-quarter GDP data is set to be released on Thursday, followed by inflation and jobs data on Friday. These releases will play a crucial role in the Fed’s interest rate decisions.
Gold prices rose by 0.4% to $2,753.60 an ounce, while futures for December delivery also increased by 0.4% to $2,765.50 an ounce by 00:39 ET (04:39 GMT).
Copper dips, China data awaited
Meanwhile, copper prices dipped as investors awaited more economic indicators from China, the largest importer of the industrial metal. Benchmark copper on the London Metal Exchange dropped 0.5% to $9,510.0 a ton, and December futures fell 0.7% to $4.3362 a pound.
Throughout October, copper had been experiencing significant losses as stimulus measures implemented by Beijing failed to instill confidence in an economic recovery. The focus has now shifted to China’s economic data, which is expected to be released on Thursday, for a better understanding of the economic landscape.
Other precious metals also saw gains on Tuesday, with silver increasing by 1% to $1,054.00 an ounce, and platinum rising by 0.2% to $34.070 an ounce.
Overall, the outlook for precious metals remains positive as investors navigate through a complex web of political and economic uncertainties.
