Gold prices climbed new heights on Oct. 29, due to a combination of political and economic uncertainties. Spot gold surged 1 percent to $2,769.25 per ounce, peaking at $2,772.42, and U.S. gold futures closed at $2,781.10. With the Federal Reserve expected to cut interest rates by 25 basis points in November, market conditions remain very favorable for gold, which typically thrives in low-rate environments.
Many smart and legendary investors own gold in their portfolios. Billionaire investor Ray Dalio, in fact, says he owns gold to hedge the risk of debt and inflation crises, according to Business Insider.
Gold’s whopping 34 percent increase so far this year reflects ongoing global tensions, including the Middle East conflict and the tense presidential race between Kamala Harris and Donald Trump, Reuters reported. Economic uncertainties in Japan have also played a part to the current allure of gold. Zaner Metals’ Peter Grant noted to Reuters the metal‘s appeal amid “safe-haven bets,” while Exinity Group’s Han Tan predicts further gains, possibly nearing $2,800 per ounce.
StoneX analyst Rhona O’Connell agrees. “Gold and the (U.S.) dollar are acting together as safe havens, which is not unusual in times of strife,” O’Connell noted to Reuters.
“Uncertainty ahead of the U.S. election next week has also supported gold’s record-breaking rally this year, and we believe it will continue to add to gold’s upward momentum. Expect more volatility in the days to come, as uncertainty around future US policies likely leads to a flight into safe havens,” ING analysts wrote, according to Investopedia.
“Gold should retain its upward bias and may even flirt with $2,800 in the days ahead, as long as U.S. election risks continue weighing on market sentiment, while Fed rate cut expectations remain intact,” said Tan to Reuters.
Gold has had an impressive run in 2024, with prices boosting since early March when they first hit around $2,160 per ounce, Bloomberg reports. This upward trend has continued almost uninterrupted, setting record after record for four straight months, CBS News reports.
And, experts say Gold will most likely continue to climb, and possibly reach $3,000 before the end of the year and possibly in November, especially since a Fed meeting is happening on Nov. 6 and 7, and there will be another inflation report dropping Nov. 13.
