Gold prices rose slightly in Asian trade on Thursday, but were nursing a tumble from record highs as anxiety over the U.S. election and a shifting outlook for interest rates favored the dollar.
But despite Wednesday’s losses, the yellow metal was still trading higher for the week, with heightened safe haven expected to keep gold prices underpinned in the coming days.
Spot gold rose 0.3% to $2,724.70 an ounce, while gold futures expiring in December rose 0.3% to $2,737.15 an ounce by 00:23 ET (04:23 GMT). Spot prices hit a record high of $2,758.53 an ounce earlier this week.
Gold remains underpinned by safe haven demand
The yellow metal still retained most of its gains this week as safe haven demand remained high in the face of a tight U.S. presidential election and heightened tensions in the Middle East.
Israeli officials presented harsh rhetoric against Iran on Wednesday, raising concerns that an Israeli strike against Tehran will cause a dire escalation in the war. Israel also kept up its offensives against Hamas and Hezbollah.
In the U.S., Republican nominee Donald Trump was seen gaining an edge over Vice President Kamala Harris in the upcoming election, which is less than two weeks away.
But markets still expect a hotly contested race, keeping uncertainty high over the future of U.S. politics.
Increased safe haven demand kept traders largely biased towards gold and other precious metals, also helping them weather strength in the dollar, as the greenback benefited from growing expectations that interest rates will fall at a slower pace.
Other precious metals were positive on Thursday and were also sitting on gains this week. Platinum futures rose 0.7% to $1,037.80 an ounce, while silver futures rose 0.6% to $34.050 an ounce.
Copper prices rise with PMIs in focus
Among industrial metals, copper prices rose on Thursday with focus turning to upcoming purchasing managers index readings from the U.S. and euro zone.
Benchmark copper futures on the London Metal Exchange rose 0.7% to $9,581.50 a ton, while December copper futures rose 0.7% to $4.3637 a pound.
Both contracts were nursing losses this week as traders held out for more cues on stimulus in top importer China. A meeting of the country’s National People’s Congress is set to take place later this month, with the government expected to then decide on plans for more fiscal spending.
