Gold Prices Rise, Near Record Level After Heated Presidential Debate By Investing.com

Investing.com– Gold prices rose in Asian trade on Wednesday and were near record highs as a heated debate between presidential candidates Kamala Harris and Donald Trump raised uncertainty about the 2024 election.

Anticipation of a key U.S. inflation measure also kept investors biased toward safe havens such as bullion and the Japanese yen, while the dollar fell on the debate.

A decline in US stock index futures also signaled a decline in risk appetite.

It was up 0.1 percent at $2,519.73 an ounce, while December expiry was up 0.2 percent at $2,548.45 an ounce by 00:19 ET (04:19 GMT).

Dollar retreats, gold advances after Harris-Trump debate

The gains in gold followed a drop in the dollar after the presidential debate late Tuesday.

Both candidates engaged in heated rhetoric against each other’s person and policies, with the debate raising expectations for a heated presidential race in 2024.

But that notion has raised uncertainty about the 2024 election, especially given that both Harris and Trump have presented very different plans for the economy.

Gold benefited from a safe-haven demand following the debate, with spot prices trading just below a record high of $2,532.05 an ounce.

Expected CPI data for several rate indices

Caution was also in play ahead of a US inflation reading due later on Wednesday.

The reading is expected to show further cooling in US inflation, which is likely to give the Federal Reserve more confidence to start cutting interest rates.

Wednesday’s inflation data comes just a week ahead of a , in which the central bank is expected to cut interest rates by at least 25 basis points.

But recent signs of resilience in the US economy have seen traders trim bets on a bigger 50 basis point cut in interest rates next week. That notion has rattled global financial markets over the past week, while keeping gold safe from new highs.

Other precious metals rose on Wednesday. rose 0.1% to $945.50 an ounce, while it rose 0.6% to $28.777 an ounce. Both metals have largely lagged behind gold in recent months.

Copper rises, but China jitters persist

Among industrial metals, copper prices rose as they recovered some from recent losses. But concerns about China – particularly slowing demand for copper in the country, as well as a potential trade war with the West – kept copper sentiment subdued.

The London Metal Exchange benchmark rose 0.7 percent to $9,086.0 a tonne, while on the month it rose 0.6 percent to $4.1285 a pound.

US lawmakers have been seen preparing a series of new restrictions on Chinese industries, which Beijing has criticized. The adoption of these measures could herald a new trade war with the West, especially after the US and its allies recently implemented high import duties on electric vehicles from China.