Investing.com — Gold Prices Update

Gold prices fell slightly in Asian trade on Friday, remaining near record highs achieved earlier this week, as traders favored safe havens amid a tight U.S. presidential election.

Despite reaching new highs, gold faced pressure from a stronger dollar and higher Treasury yields, but was still set for mild weekly gains, marking its third consecutive week of increases.

Safe Haven Demand
Concerns over worsening geopolitical conditions in the Middle East boosted safe haven demand for gold.

• Spot gold slipped 0.4% to $2,724.55 an ounce.
• December futures for gold also fell 0.4%, reaching $2,737.05 an ounce by 00:30 ET (04:30 GMT).
• Gold is expected to rise about 0.2% this week, following a record high of $2,758.53 an ounce.

Election and Middle East Jitters Keep Gold Strong

Demand for gold has been heightened by uncertainty surrounding the U.S. election, with less than two weeks until voting.

Recent polls and prediction markets suggest Republican nominee Donald Trump has gained an edge over Vice President Kamala Harris.
Despite the tight race, markets remain risk-averse, supporting gold demand.

Geopolitical Concerns
Tensions in the Middle East, particularly between Israel and Iran, have further complicated market sentiment. Recent harsh rhetoric from Israel against Iran has raised fears of a potential retaliatory strike.

Additionally, ongoing conflicts involving Israel, Hamas, and Hezbollah show no signs of de-escalation despite U.S. peace efforts.

Other precious metals also faced declines on Friday:
– Platinum futures fell 1.5% to $1,022.95 an ounce.
– Silver futures decreased 0.5% to $33.635 an ounce but were up 1.2% this week.

Copper Falling: Fourth Week of Losses

In the industrial metals sector, copper prices dropped on Friday, facing a fourth consecutive week of losses amid a strong dollar and uncertainty regarding Chinese stimulus measures.

• Benchmark copper futures on the London Metal Exchange decreased 0.3%, now $9,535.50 a ton.
• December futures for copper fell 0.5%, priced at $4.3457 a pound, also down about 1% for the week.

China’s National People’s Congress, which was expected to provide insights on fiscal stimulus, has been postponed from late October to November.
Though China has announced significant stimulus measures in recent weeks, traders are seeking more clarity regarding timing and scale, impacting market sentiment.