{"id":15560,"date":"2024-10-30T03:26:24","date_gmt":"2024-10-30T03:26:24","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15560"},"modified":"2024-10-30T03:26:24","modified_gmt":"2024-10-30T03:26:24","slug":"us-election-fuels-gold-rally-amid-fed-rate-cut-bets","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/us-election-fuels-gold-rally-amid-fed-rate-cut-bets\/","title":{"rendered":"US Election Fuels Gold Rally Amid Fed Rate Cut Bets"},"content":{"rendered":"\n<p><em>Listen to the article here:<\/em><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/15560.mp3\"><\/audio><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Spot gold touched an all-time high of $2,778.79 per ounce as US election risks raised safe-haven demand.<\/li>\n\n\n\n<li>With a potential Fed rate cut on the horizon, low interest rates could support bullion prices further.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/analysis\/gold-moves-with-fed-outlook-and-u-s-elections\/\">Gold prices<\/a> touched a record high of $2,778.79 per ounce on Wednesday, driven by traders\u2019 anxieties over the US election and expectations of dovish Federal Reserve policy moves. Spot gold traded up 0.1% to $2,778.27 per ounce in early hours, continuing its bullish trajectory. <\/p>\n\n\n\n<p>US gold futures also saw gains, rising 0.4% to $2,790.60.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-64-1024x473.jpeg\" alt=\"\" class=\"wp-image-15561\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>See also: Gold prices steadily climbed, reaching a high of 2782.16, with the MACD showing bullish momentum as moving averages trend upward on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>As US voters prepare to head to the polls, a narrow election race has driven many towards safe-haven assets, propping up bullion. <\/p>\n\n\n\n<p>In recent days, the US Job Openings and Labor Turnover Survey (JOLTS) from September showed job openings falling to the lowest level in over three and a half years, reflecting a labour market slowdown. <\/p>\n\n\n\n<p>Revised data also pointed to a decline in August job openings, deepening concerns of a weakened economic outlook.<br><br><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/market_analysis\/week-ahead-brace-for-trump-harris-showdown\/\">Brace for Trump-Harris Showdown<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Consumer Confidence Rises, Fed Still Weighs Rate Cut<\/strong><\/h2>\n\n\n\n<p>Interestingly, October\u2019s consumer confidence report offered a positive surprise, with the index hitting 108.7\u2014its highest level in nine months, up from 99.2 in September. <\/p>\n\n\n\n<p>Despite this boost, the consensus among Federal Reserve policymakers leans heavily towards a quarter-point cut in borrowing costs next week. <\/p>\n\n\n\n<p>The Fed\u2019s rate decision, scheduled for November 7, will hinge on additional data, including ADP employment, Personal Consumption Expenditures (PCE), and payrolls later this week.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">JPMorgan and Bank of America are now forecasting a quarter-point reduction in rates when the Fed next meets in November, giving up on their calls for a larger cut <a href=\"https:\/\/t.co\/qMuAxWCC55\">https:\/\/t.co\/qMuAxWCC55<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1842229546688372910?ref_src=twsrc%5Etfw\">October 4, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>This rate-cut expectation is particularly beneficial for gold, which thrives in low-rate environments where it can better compete with yield-bearing assets. Furthermore, gold remains a popular hedge against the political and economic uncertainties looming in the lead-up to the election. <\/p>\n\n\n\n<p>The spike in demand highlights traders\u2019 preference for safe assets amidst the broader geopolitical context, including elevated tensions in the Middle East, as Gaza reports a mounting death toll.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Indian Gold Demand Steady; Mixed Metal Movements<\/strong><\/h2>\n\n\n\n<p>On the physical side, Indian gold buyers have stayed resilient despite the record-high prices, maintaining purchases for Dhanteras and Diwali festivities. Many buyers are banking on the precious metal\u2019s continued rally to offset recent stock market volatility. <\/p>\n\n\n\n<p>Other metals saw mixed movements: spot silver edged up 0.2% to $34.51, palladium rose 0.5% to $1,050.42, while platinum saw a slight pullback, declining 0.9% to $1,211.37.<\/p>\n\n\n\n<p>As US election uncertainty and potential interest rate cuts continue to drive gold demand, the outlook remains bullish with cautious optimism for further gains if these factors persist.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold hits record high as US election concerns and potential Fed rate cuts drive demand. Mixed economic signals and global tensions boost safe-haven buying. -vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[7,46],"class_list":["post-15560","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-gold","tag-precious-metals"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15560"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15560\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}