On October 30, gold prices surged to an all-time high as investors sought refuge in the precious metal ahead of the upcoming U.S. presidential election. Spot gold rose 0.2% to $2,779.39 per ounce, following an earlier peak of $2,782.03. U.S. gold futures also increased by 0.4%, reaching $2,791.70.
The election, scheduled for November 5, has intensified market focus, with polls indicating a close contest between Donald Trump and Kamala Harris. Analysts suggest that gold's rally is significantly influenced by expectations of further U.S. interest rate cuts, which diminish the cost of holding non-yielding bullion.
Market analysts predict a likely quarter-point reduction in short-term borrowing costs by the Federal Reserve next week, following a report revealing a decline in U.S. job openings to their lowest since January 2021. Key economic data, including the ADP employment report and U.S. Personal Consumption Expenditures (PCE), are set to be released this week, potentially impacting gold prices.
Despite the record prices, Indian gold buyers are actively purchasing for the Dhanteras and Diwali festivals, anticipating further price increases amid a slowing stock market. In contrast, spot silver declined by 0.3% to $34.33 per ounce, while palladium fell nearly 1% to $1,210.72. Platinum saw a slight increase of 0.1%, reaching $1,046.89.
Additionally, a Reuters poll indicates that stronger demand and potential supply disruptions are expected to elevate platinum and palladium prices in 2025 compared to this year's averages.