Gold prices touch fresh record high as US election, economic data loom large

Investing.com -- Gold prices touched a fresh record high on Tuesday, as the run-up to the 2024 presidential election and uncertainty prior to upcoming economic data kept safe haven demand in play.

At 10:44 ET (14:44 GMT), spot gold had climbed by 1.0% to $2,769.02 an ounce, moving above an all-time peak of $2,759 an ounce. Meanwhile, gold futures expiring in December rose by 0.9% to $2,780.00.

The yellow metal has been bolstered by the uncertainty surrounding expectations of a tight U.S. presidential election on Nov. 5. Recent polls suggest Donald Trump and Kamala Harris are all but even heading into the final days of campaigning prior to the ballot. Prediction markets, however, show Trump holding a sizeable advantage, boosting the appeal of gold given the growing concerns over an escalating US debt crisis.

The US deficit hit $1.8 trillion for the fiscal year ending in September, accounting for around 6% of gross domestic product. If Trump wins and his Republican party gains control of both chambers of the US Congress, debt in the world's biggest economy could skyrocket by an additional $7.5 trillion over the next decade, some analysts have said.  

Safe haven demand was also buoyed by anticipation around a string of key economic readings this week, which are likely to factor into the Federal Reserve’s plans for interest rates.

Data on Tuesday showed US job openings were lower than anticipated in September, slipping to their lowest level since January 2021, in a possible sign of a gradually slowing labor market that could support the case for the Fed to once again slash rates in November. 

Elsewhere, third-quarter gross domestic product data is due on Thursday. The personal consumption expenditures price index data -- the Fed’s preferred inflation gauge -- and nonfarm payrolls are scheduled to be released on Friday.  

(Ambar Warrick and Peter Nurse contributed reporting.)

Source: Investing.com