Gold prices rose in European trade on Wednesday, and traded above $2750 an ounce for the first time ever as haven demand on the precious metal accelerates before the US presidential elections, News.Az reports citing The Economies .
The gains come despite the continuous rise by US 10-year treasury yields following bullish remarks from some Fed officials, which hurt the odds of a Fed interest rate cut in November.Prices
Gold prices rose 0.35% today to $2758 an ounce, the highest ever, with a session-low at $2738.
On Tuesday, gold prices rose 1.1%, marking the fifth profit in six days on strong haven demand.
US Elections
A new poll by Reuters-Iposos showed Kamala Harris ahead by a 46-43% margin against Donald Trump in a presidential election tieup.
US Yields
US 10-year treasury yields rose 0.7% on Wednesday on track for the third rise in a row, hitting a three-month high at 4.24% and bolstering the dollar’s standing.
The gains come after strong US data and bullish remarks from Fed officials last week.
Dallas Fed President Lorry Loan said she’s confident of the economy’s stability and strength, but called for caution nonetheless and for gradual policy easing.
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November fell from 92% to 87%, while the odds of maintaining rates unchanged stood at 13%.
SPDR
Gold holdings at the SPDR Gold Trust rose 6.61 tonnes yesterday to a total of 895.24 tonnes, the highest since August 2023.
