Gold prices are edging higher, returning to record levels as markets refocus on critical US economic releases this week, including PCE inflation, advance estimates for Q3 GDP, and payroll figures – all coming ahead of the presidential election and the Federal Reserve’s monetary policy decision next week.
Gold prices benefited from robust safe-haven demand amid persistent geopolitical tensions, expectations of monetary policy easing, and mounting uncertainty surrounding the US presidential election.
These fundamental factors, combined with strong physical demand, continue to provide support for gold as elevated global risks push prices higher.
Potential stronger-than-expected US economic data could reinforce the Federal Reserve’s cautious stance, likely resulting in fewer and smaller interest rate cuts than markets currently anticipate. Such an outcome would potentially boost Treasury yields and strengthen the US dollar’s upward momentum, which could temporarily cap gold’s bullish trend, albeit modestly.
However, the underlying supportive factors for gold remain intact, suggesting the precious metal’s upward trajectory may persist despite near-term headwinds.
