Gold prices reached new record highs this week amid uncertainty surrounding the upcoming election and the rising U.S. national debt.
Prices for gold futures have risen over 32% year to date and more than 38% in the past year and have set a number of new all-time highs in the process.
Gold reached new records of $2,738 on Monday and $2,760 on Tuesday, before paring back some of those gains and closing at $2,749 on Thursday.
Investors have turned to gold as a safe haven from a variety of geopolitical risks in the past year, including the ongoing conflicts in the Middle East and Ukraine. Uncertainty surrounding the direction of U.S. economic policy after the election, as well as the Fed’s rate cutting plans and long-term trajectory of the growing national debt have also bolstered investment in gold.
“What we’re really seeing is gold continuing to be viewed as a quintessential hedge against inflationary pressures along with the safe-haven demand and fund inflows, gold continues to be extremely well supported,” said David Meger, director of metals trading at High Ridge Futures.
“Uncertainty leading into the U.S. election is one additional pillar of support for the gold market, given the unease that the market may be feeling going into the election.”