The precious metal continues to rise in price in markets due to increased demand for “safe haven” assets.
The price of gold continues to rise and on Monday it updated its historical record. This was confirmed by data on the Comex exchange on Monday, October 21.
Thus, December gold futures rose another 0.74% and exceeded $2,750 per ounce. At its peak today, the precious metal is worth about $2,752.
As written by Western agencies, gold is rising in price amid increasing demand for the “safe haven” asset. Traders are closely monitoring what is happening in the Middle East, fearing an escalation of unrest in the region.
Also, the uncertainty of the future results of the US presidential election supports the demand for the precious metal.
A Republican victory is likely to provide further support for gold, given the potential for worsening US financial problems, as well as inflation risks, geopolitical and trade tensions, JPMorgan analysts said, as as quoted by The Wall Street Journal.
Another factor contributing to higher prices for the precious metal is the easing of monetary policies by central banks around the world.
On Monday, the People’s Bank of China lowered the base lending rate (LPR) for one-year loans by 25 basis points (bps) to 3.1% per annum. The rate on five-year loans was also reduced by 25 bps, to 3.6%. Both rates are at their lowest.
Traders expected the US Federal Reserve to cut its base rate in November, but now by just 25 bps from the previous 50 bps.
Let’s remember that at the beginning of December 2023, the price of gold exceeded $2,100 per ounce for the first time in history. At the time, analysts predicted that the price of the precious metal could remain above $2,000 per ounce in 2024. Last week the price of gold reached a new high.
The Armenian wants to get a gold chain weighing about 2 kg from the Russian Federation.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.