The rise in gold prices reflects a broader trend of investors seeking safety amid geopolitical instability, particularly in the Middle East.
The Federal Reserve's monetary policy decisions are playing a crucial role in shaping market expectations and asset valuations, particularly for gold and the US dollar.
The increase in US crude inventories suggests a potential oversupply in the oil market, impacting prices negatively despite some recovery signs in global demand.
If geopolitical tensions continue, gold prices may remain elevated as investors seek safe-haven assets.
Oil prices could stabilize or rebound if demand from major economies like China strengthens significantly.
The outcome of the US presidential election could further influence market sentiments and asset prices, particularly in commodities.
Gold prices reached a new record high of $2,755.48 per ounce amid geopolitical tensions and uncertainty over the upcoming US presidential election. The demand for safe-haven assets increased as investors reacted to the ongoing conflicts in the Middle East, particularly Israel's military actions in Gaza and Lebanon. Meanwhile, oil prices fell due to rising US crude inventories, with Brent crude futures dropping to $75.63 per barrel and West Texas Intermediate (WTI) at $71.33 per barrel. The Federal Reserve's recent interest rate cuts also influenced market dynamics, with expectations of further easing contributing to the appeal of gold as a non-yielding asset.
