Market Analysis

Gold prices experienced an increase on Tuesday, staying close to the record high reached in the previous session amid uncertainties surrounding the U.S. election, ongoing tensions in the Middle East, and expectations of interest rate cuts by central banks.

By 0303 GMT, gold was up 0.4% to $2,729.91 per ounce, while U.S. gold futures rose 0.2% to $2,744.40. Gold achieved its peak of $2,740.37 on Monday, marking a 32% increase for the year.

Market strategist Yeap Jun Rong from IG noted, "A mix of supportive factors is driving gold prices, including its appeal as a hedge against uncertainties related to the U.S. election and geopolitical tensions, strong demand from central banks, and potential for increased ETF buying."

With the U.S. presidential election just over two weeks away, former President Donald Trump and Vice President Kamala Harris are in a tight race for key states.

Recent events in Israel include the assassination of Hezbollah's and Hamas's leaders, alongside ongoing military actions.

Meanwhile, traders are anticipating a 91% probability of a quarter basis point cut by the Federal Reserve in November, according to the CME FedWatch tool.

Despite a strengthening U.S. dollar and rising yields, gold prices continue to climb. Benchmark 10-year Treasury yields have reached a 12-week high, while the U.S. dollar remains at a two-and-a-half-month high on Tuesday.

In other precious metals, spot silver rose 0.5% to $33.93 per ounce after reaching its highest level since late 2012. Citi Research has adjusted its 6 to 12-month silver price forecast upward to $40 per ounce from $38 per ounce. Platinum increased by 0.3% to $1,006.35 per ounce, and palladium gained 0.6% to $1,057.65.

Paraphrasing text from "Reuters" all rights reserved by the original author.