The rise in gold prices highlights the market's reaction to political uncertainty, particularly surrounding the U.S. elections.
The dollar's performance is closely tied to investor sentiment regarding Trump's policies, which are perceived to have inflationary effects.
Oil market fluctuations are influenced by both geopolitical events and domestic inventory reports, indicating a complex interplay of factors affecting prices.
Gold prices may continue to fluctuate as election results are anticipated, with potential resistance levels to watch.
Should the Federal Reserve signal further interest rate cuts, gold could see increased demand as a non-yielding asset.
Oil prices may stabilize or rise further if inventory declines continue and geopolitical tensions persist.
Gold prices reached a new all-time high as investors sought safe-haven assets ahead of the U.S. presidential election on November 5. Spot gold peaked at $2,789.89 an ounce before settling at $2,783.81, marking a 0.33% increase. U.S. gold futures also saw a rise, reaching $2,801.70 before falling to $2,794.40. Analysts predict resistance levels for spot gold at $2,800 and $2,826, influenced by expectations of U.S. interest rate cuts due to declining job openings and inflation concerns. Goldman Sachs adjusted its gold price forecast from $3,080 to $3,000 by December 2025, maintaining a bullish outlook despite the revision.
The U.S. dollar remained steady, hovering near a three-month high amid speculation of Donald Trump's potential victory in the upcoming election. The dollar index fell slightly to 104.09 after peaking at 104.63, with Trump's policies viewed as inflationary, consequently boosting U.S. bond yields. Bitcoin also surged, trading near its all-time high as Trump pledged to position the U.S. as the leading cryptocurrency hub.
Oil prices increased following reports of declining U.S. fuel inventories, with Brent crude futures rising by 1.28% to $72.03 a barrel. Despite earlier declines, market analysts noted a reduction in crude stocks by 573,000 barrels and gasoline stocks by 282,000 barrels, contrary to expectations of an increase. The market is also closely monitoring a potential ceasefire between Israel and Hezbollah, which could affect oil supply dynamics.
