Spot gold was 0.6% higher at $2,676.63 per ounce, and trading almost $9 below a record high of $2,685.42 hit last month
Gold prices extended gains to a second session on Wednesday, driven by weaker equities and bond yields, while traders eagerly await U.S. economic data to gauge the Fed’s timeline on a potential rate cut.
Spot gold was 0.6% higher at $2,676.63 per ounce, as of 0832 GMT, and trading almost $9 below a record high of $2,685.42 hit last month. U.S. gold futures added 0.5% to $2,693.30.
Seems the gold market wants to see a record high, with prices slightly below the late-September record high with support coming from a slightly risk-off environment with equities down, UBS analyst Giovanni Staunovo said.
Safe-haven bullion tends to be a preferred investment in a low interest rate environment and during economic and geopolitical turmoil.
The uncertainty surrounding U.S. elections and geopolitical tensions will also support gold going forward, according to ANZ commodity strategist Soni Kumari.
The benchmark 10-year note yields slid to more than one-week low, making non-yielding gold more attractive.
Market participants are keeping a keen eye on U.S. retail sales, industrial production and weekly jobless claims data, due on Thursday.
Gold needs a stronger-than-expected data to change the rate-cut trajectory, but this should still boost investment demand and drive prices to a record high in the coming months, Staunovo added.
San Francisco Federal Reserve Bank President Mary Daly said the central bank remains on track for more cuts this year as long as data meets expectations.
Delegates to the London Bullion Market Association’s annual gathering predicted gold prices would rise to $2,941 over the next 12 months and silver prices would climb to $45 per ounce.
