Weekly Gold Price Surge Likely

25 Oct 2024 , 12:01 PM

Palladium remained close to a 10-month high, while gold prices remained stable on Friday but were on track for a weekly rise due to safe-haven demand brought on by growing geopolitical fears.

Spot gold had barely changed, trading at $2,733.63 an ounce. Prices were up 0.5% so far this week and reached a record high of $2,758.37 on Wednesday.

According to CME’s FedWatch Tool, markets are pricing in a 96.9% possibility of a 25 basis point drop at the U.S. Federal Reserve’s November meeting.

U.S. gold futures dropped to $2,746.3, down 0.1%.

Israel’s military announced Thursday that it has killed a Hamas commander who supported the U.N. humanitarian organisation in the Gaza Strip and participated in the Oct. 7, 2023, attack on southern Israel.

With polls indicating a close contest between Donald Trump and Kamala Harris, there was also a lot of uncertainty leading up to the November 5 U.S. Election Day.

According to Scope Ratings, there is growing anxiety about the U.S. fiscal deficit.

Gold is regarded as a secure investment in times of political and economic unpredictability. It also does well when interest rates are low.

Although the number of people receiving U.S. unemployment benefits in mid-October was the highest in almost three years, the number of new applications for the program unexpectedly decreased last week, suggesting that it was getting more difficult for those who lost their jobs to find new ones.

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