GOLD prices extended gains and scaled another record high on Monday (Oct 21), steered by elevated Middle East tensions and US election uncertainty, while silver hit a near 12-year peak.
Spot gold rose 0.2 per cent to US$2,724.88 per ounce, as at 0037 GMT, after hitting an all-time high of US$2,725.81 earlier in the session. US gold futures was 0.4 per cent higher to US$2,740.00.
Hundreds of Beirut residents fled their homes late Sunday, with multiple explosions heard across the Lebanese capital, as Israel prepared to attack sites linked to the financial operations of Lebanon’s Hezbollah group and told people to leave those areas immediately.
With less than three weeks to go, the 2024 contest between former president Donald Trump and Vice-President Kamala Harris is neck and neck in the seven battleground states that will decide the Nov 5 election, according to opinion polls.
Elsewhere, the US budget deficit grew to US$1.833 trillion for fiscal 2024, the highest outside of the Covid era, as interest on the federal debt exceeded US$1 trillion for the first time, the Treasury Department said on Friday.
Bullion is considered a safe investment amid periods of economic and political turmoil. Lower rates enhanced its allure as it yields no interest.
Traders are pricing in a 99 per cent chance of a US Federal Reserve rate cut in November, according to the CME Fedwatch tool. The European Central Bank cut interest rates by a quarter point last week.
Spot silver rose 0.1 per cent to US$33.69 per ounce, after hitting its highest level since late 2012. Silver is considered both an investment asset due to its relationship with gold and an industrial metal.
Platinum steadied at US$1,013.54 and palladium gained 0.2 per cent to US$1,081.50. REUTERS
