Gold Pauses After Record Run

22 Oct 2024 , 09:53 AM

Tuesday saw little change in gold prices following their record high during the previous day due to growing geopolitical unrest in the Middle East and concerns over the outcome of the US presidential election.

Spot gold was up 0.1% at $2,723.06 an ounce. US gold futures dropped by 0.1% to $2,737.1.

The benchmark 10-year Treasury yields spiked to a 12-week high, placing pressure on zero-yield bullion, and the dollar reached its highest level since August 2.

Monday saw the all-time high of $2,740.37 for gold, which has gained almost 32% so far this year due to a looser monetary policy environment and increased global uncertainty. When interest rates are lower and there is uncertainty, gold is a better investment.

On Monday, Israel launched multiple attacks in the southern suburbs of Beirut, one of which was close to the main government hospital in the capital. With only two weeks left until the election, the race for the presidency of the United States is intensifying elsewhere.

Lorie Logan, the president of the Federal Reserve Bank of Dallas, stated on Monday that she believes the Fed will continue to decrease interest rates and that there is no reason why it can’t continue to reduce its balance sheet.

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