Gold prices escalated, reaching a historic peak due to increased geopolitical tensions and uncertainties surrounding the upcoming U.S. presidential election. Spot gold hit a record $2,697.90 per ounce, while December futures on the New York Commodity Exchange reached a new high of $2,712.70. Technical buying further boosted both gold and silver prices.
December gold futures rose by $13.30 to close at $2,704.60, whereas December silver futures dipped by $0.234 to $31.74. U.S. economic data revealed a 0.4% month-on-month rise in retail sales for September, exceeding the anticipated 0.3% and the previous month's 0.1% increase. Initial jobless claims increased by 241,000, slightly below the expected 260,000, following last week's 258,000.
These data points align with the hawkish stance of U.S. monetary policy, hinting at potential restraint in Federal Reserve rate cuts, though today's figures are unlikely to alter the Fed's policy direction. Meanwhile, the European Central Bank reduced its main interest rate by 25 basis points, lowering the deposit facility rate to 3.25%, as widely anticipated.
In other news, brokerage SP Angel reported Hong Kong's plan to develop as a gold trading hub, leveraging its stability and security. This move reflects the growing interest in gold by developing economies seeking to diversify foreign exchange reserves, with notable increases in holdings by China, Russia, and Turkey in recent years. The upcoming BRICS summit, hosted by Russia, will focus on de-dollarization.
The U.S. dollar index strengthened against key global currencies, and the 10-year Treasury yield rose to 4.091%. Oil prices remained steady, trading around $70.25 per barrel.
From a technical perspective, December gold remains robust, with the next target being a close above the $2,750 resistance level. Key support is noted at $2,648.90, with resistance at $2,712.70 and $2,725.00. For December silver futures, the upward trend continues, with the goal to surpass the resistance at $33.50.
Spot gold is currently at $2,690.54 per ounce, up 0.63%, while COMEX gold futures are at $2,706.3, a 0.56% increase. Spot silver is at $31.552 per ounce, down 0.32%, with COMEX silver futures at $31.750, also down 0.32%.
