October 23, 2024
New Delhi, India
Gold Price(XAU/USD)
Gold (XAU/USD) continued its upward trend on Wednesday, reaching an all-time high above the $2,750 mark. The rally is driven by investor demand for safe-haven assets amid the ongoing conflict in the Middle East and growing uncertainty around the upcoming US elections.
Safe-Haven Demand Lifts Gold
Investor sentiment has shifted heavily toward safe-haven assets like Gold as geopolitical tensions rise, particularly in the Middle East. Additionally, in the US, political uncertainty is mounting, with former President Donald Trump and Vice President Kamala Harris running neck-and-neck in opinion polls. The potential return of Trump to power is seen as a factor adding to global instability.
BRICS and Gold’s Rising Importance
Another factor fueling Gold’s surge is the focus on the BRICS trading bloc, as its 2024 summit gains attention. Russia and other members of BRICS are discussing the possibility of introducing a new currency backed by Gold to challenge the dominance of the US Dollar in global trade.
Bond Yields Limit Gold’s Upside
While Gold has surged, gains have been somewhat capped by a global bond rout, which has lowered expectations for rapid interest rate cuts. In the US, the Federal Reserve is taking a slower approach to reducing interest rates, keeping the US Dollar and interest rates relatively high. This, in turn, limits Gold’s appeal, as it offers no interest.
Gold Price was trading at XAUUSD 2,750.15 up +1.14(+0.04%) by 4:40 PM IST today.
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