Gold prices hover near record high amid rising global uncertainties

On October 21, the yellow metal, which is considered a hedge against political and geopolitical uncertainty, hit its all-time high of $2,740.37 and has gained over 32 percent so far this year.

Gold price continued its upward trajectory on October 22 as it hovered around record high hit in the last trading session amid uncertainties over US election, growing tensions in the Middle East and expectations of central banks cutting interest rates.

Reuters reported that spot gold rose 0.6 percent to $2,735.14 per ounce by 0658 GMT and US gold futures rose 0.4 percent to $2,749.3.

On October 21, the yellow metal, which is considered a hedge against political and geopolitical uncertainty, hit its all-time high of $2,740.37 and has gained over 32 percent so far this year.

"A confluence of tailwinds remains in place (for gold), which includes its status as an attractive hedge against U.S. election uncertainties and geopolitical risks, resilient central banks' demand and room for catch-up ETF buying," IG market strategist Yeap Jun Rong said.

"Buyers may seem to eye the $2,800 level next, as political uncertainties will persist as the election draws nearer."

In India, the prices remained stable as 22 karat gold was quoting Rs 73,000 per 10 grams, while 24 karats variety was trading at Rs 79,640 for 10 grams, according to online portal goodreturns.in.

The price for silver gained Rs 100 to trade at Rs 101,100 per kg, according to data provided by goodreturns.in.

For December 5, 2024, gold futures were trading at Rs 78,260 per 10 grams, up 0.28 percent on MCX on October 22.

With the U.S. presidential election just over two weeks away, former President Donald Trump and Vice President Kamala Harris are caught in a knife-edge battle to win over some of the more competitive states.

Recently, Israel assassinated the leaders of Hezbollah in Lebanon and of Hamas in Gaza, while showing no signs of reining in its ground and aerial offensives.

Traders now see an 89% chance of a 25-basis-point cut by the U.S. Federal Reserve in November, according to the CME Fedwatch tool.

Gold's rally comes despite a firmer dollar and yields. Benchmark 10-year treasury yields rose to a 12-week high in the last session, while the dollar clung to a two-and-half-month high on Tuesday.

Spot silver rose 0.9% to $34.05 per ounce after hitting its highest since late-2012 in the last session. Citi Research revised its six- to 12-month forecast for silver prices upward to $40 per ounce from $38 per ounce.

With Reuters input