Spot gold rose 0.6% to $2,709.28 per ounce and added 2% this week
Gold breached the $2,700-per-ounce level on Friday for the first time ever, as U.S. election jitters and ongoing Middle East tensions boosted safe-haven demand, while a looser monetary policy environment also added fuel to the rally.
Spot gold rose 0.6% to $2,709.28 per ounce by 0430 GMT and added 2% this week. U.S. gold futures gained 0.6% to $2,724.50.
Gold could gather further traction given the fluidity of election developments and geopolitical uncertainties, according to OCBC FX strategist Christopher Wong.
Elsewhere, with less than three weeks remaining to cast votes this U.S. presidential election, Democratic Vice President Kamala Harris and Republican former President Donald Trump are stretching for the support of every last voter.
Gold has scoffed at a surging dollar and rallies at every chance it gets. It is just a bull market that shows no signs of exhaustion, said Tai Wong, a New York-based independent metals trader.
U.S. economic data released overnight pointed to a strengthening economy, which strengthened the U.S. dollar. But traders still see a 90% probability of a Fed rate cut in November. The ECB cut interest rates for the third time this year as the euro zone economy sags.
Bullion will continue to perform well over the long term, benefiting from the precarious fiscal situations of many Western nations, and the global desire for a store of value independent of other assets and institutions, according to Ryan McIntyre, senior portfolio manager at Sprott Asset Management.
Delegates to the London Bullion Market Association’s annual gathering predicted gold would advance to $2,941 over the next 12 months and silver to $45.