Gold Hits Record High Ahead of Election as Investors Brace for Stock Volatility

Gold futures (GC1!) hit a new all-time high on Wednesday, briefly rising above $2,800 for the first time as investors rushed to the precious metal as a safe-haven investment amid uncertainty over next week’s US presidential election and rising geopolitical tensions.

Surpassing an all-time high set just yesterday, gold futures rose to $2,801.70 in early trading before giving up some of those gains. This makes gold one of the best-performing commodities year to date, up nearly 35% and easily outpacing the S&P 500’s 22% gain.

What is fueling gold’s rally?

Gold has traditionally been seen as a safe haven asset when you anticipate stock market turmoil or as a hedge against inflation. Many Americans are concerned about how the results of next week’s presidential election may affect stock markets, the economy, and their personal finances.

“Uncertainty ahead of next week’s US elections has fueled gold’s record rally this year, and we believe it will continue to add further bullish momentum for gold. We expect more volatility in the coming days, as uncertainty over future US policies is likely to “To a flight to safe havens,” ING analysts wrote Wednesday.

Purchasing of gold by central banks, especially in China, has supported prices throughout the year as retail investors move away from gold exchange-traded funds (ETFs).

In recent months, retail investors have not only poured billions into gold ETFs, but also purchased gold bullion at their neighborhood Costco (COST), with growing uncertainty about when the Federal Reserve will cut interest rates, the possibility of the US entering a recession, and the possibility The United States enters a recession. Growing tensions in the Middle East.