Gold prices hit record highs today as global investors appear to be panic buying ahead of the US election early next month. Bulk gold (bullion) surged above $US2,700 per ounce for the first time, stretching its gain to 31 per cent this year.
A number of factors are behind the recent gold rush — including the US election and geopolitical events in the middle east. Central banks are accumulating gold, yet purchasing has slowed after “record-breaking” demand at the start of the year, according to the World Gold Council.
Deputy governor of the Reserve Bank, Andrew Hauser, says “Global financial markets are being spectacularly optimistic, particularly in the equity market, about the probability of a soft [economic] landing, really throughout the post-COVID period,” he told a Commonwealth Bank investor briefing on Monday.
Analysts predict that Wall Street is betting on a Donald Trump victory, which is perceived to be a positive for the world’s biggest economy, which is performing well despite inflation and current consumer trends.
Some view the high price of gold as an indication that investors are preparing for a global recession.”Inevitably with [financial] markets, they don’t go up in straight lines forever,” markets analyst Henry Jennings said.
IG London’s Chris Beauchamp says the gold rush shows no sign of slowing. “The recent dip in early October worked out well for the bulls who have seen a fresh leg higher in this strong trend,”
The price of silver has also risen more than 30 per cent this year.
By CEO NA Editorial Staff
