A few weeks before the American presidential elections, the gold price rose to a new record. On the London Stock Exchange, the price for a troy ounce (about 31.1 grams) rose to $2,688 (2,467 euros), surpassing the previous record set at the end of September by about $3.
It is unclear who will win the American elections on November 5: Republican Donald Trump or Democrat Kamala Harris. Given the unclear outlook for U.S. economic policy, investors continue to focus on gold, which is often sought after in uncertain times.
Low interest rates stimulate demand for gold
In addition, the recent decline in oil prices has dampened concerns that inflation could pick up significantly again. From an investor perspective, this also gives central banks more leeway to cut rates – and low interest rates tend to boost demand for gold. Investing in term deposits, for example, is then less attractive.
If interest rates fall in the US, this could put pressure on the dollar and make gold – which is traded in dollars – more attractive to buyers from other currency areas. Moreover, the situation in the Middle East remains tense.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
