Gold Prices Surge as Harris-Trump Debate Raises Uncertainty for 2024 Elections
In the aftermath of a fiery debate between presidential candidates Kamala Harris and Donald Trump, gold prices in Asian trade soared to near record highs. This surge in gold prices was fueled by anticipation of a key U.S. inflation reading and a drop in U.S. stock index futures, which signaled a shift towards safe haven assets.
Gold rose 0.1% to $2,519.73 an ounce, while gold futures expiring in December climbed 0.2% to $2,548.45 an ounce. The decline in the dollar post-debate further boosted gold prices, with spot prices trading just below a record high of $2,532.05 an ounce.
Investors are now closely watching the upcoming U.S. inflation reading for more insights on the Federal Reserve's interest rate decisions. Recent signs of resilience in the U.S. economy have led traders to scale back bets on a larger interest rate cut next week, impacting global financial markets.
In addition to gold, other precious metals also saw gains on Wednesday. Silver rose 0.1% to $945.50 an ounce, while platinum surged 0.6% to $28.777 an ounce. However, concerns over China's industrial demand for copper and potential trade tensions with the west continue to impact copper prices.
Overall, the uncertainty surrounding the 2024 elections, coupled with economic data and geopolitical developments, is driving volatility in the financial markets. Investors should stay informed and monitor these factors closely to make well-informed decisions for their portfolios.