Gold Prices Skyrocket Amidst Global Turmoil

21 Oct 2024 , 09:43 AM

Amid growing tensions in the Middle East and uncertainty surrounding the US election, gold prices continued to rise and reached a new high on Monday, while silver reached a level not seen in almost a decade.

Spot gold was up 0.2% to $2,724.88 per ounce, having earlier in the session reached an all-time high of $2,725.81. US gold futures increased by 0.4% to $2,740.00.

In other news, the Treasury Department reported on Friday that interest on the national debt surpassed $1 trillion for the first time, causing the U.S. budget deficit to rise to $1.833 trillion for the fiscal year 2024—the largest level since the COVID era.

Hundreds of Beirut citizens left their houses late on Sunday night as Israel readied itself to strike locations connected to the financial activities of Lebanon’s Hezbollah organisation and ordered everyone to evacuate the region right once. Multiple explosions were audible throughout the Lebanese city.

Using the CME Fedwatch tool, traders are pricing in a 99% chance of a rate drop by the US Federal Reserve in November. Last week, the European Central Bank lowered interest rates by a quarter point.

Spot silver reached its highest point since late 2012, as it increased 0.1% to $33.69 per ounce. Because of its correlation with gold, silver is regarded as an industrial metal as well as an investment asset.

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