Gold prices edged closer to $2,750 on Tuesday as investors turned to safe-haven assets amid growing concerns over the upcoming US elections. Mounting political uncertainty and fears of potential market volatility pushed demand for the precious metal higher.
As the election nears, investors are increasingly wary of potential shifts in economic policies that could impact global markets. This heightened risk aversion has led to a surge in demand for gold, traditionally seen as a hedge against market instability.
The dollar weakened slightly, further supporting gold’s upward momentum. A weaker dollar typically makes gold more attractive for foreign investors, as it becomes cheaper in other currencies. Spot gold rose 0.6%, nearing the $2,750 mark, while US gold futures also gained, signaling a continued bullish sentiment.
Gold’s recent rally comes amid a backdrop of rising geopolitical tensions and concerns over global economic growth, with investors hedging against potential risks in both equity and bond markets. In the days leading up to the election, market participants are closely watching for any indications of a potential shift in US fiscal policies, which could further drive volatility.
While some analysts suggest that gold could remain elevated if election concerns persist, others warn of a potential pullback if political clarity is achieved in the coming weeks. For now, the metal’s safe-haven appeal remains strong, with gold bulls eyeing $2,800 as the next potential resistance level.
