Gold sets new record

Market analysis on behalf of Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A

Gold prices have reached a new record high at 2789 dollar per oz, driven by strong demand amid global uncertainties. The ongoing U.S. presidential election has introduced a risk premium into the markets, particularly as Trump gains support, raising concerns about tariffs, inflation, and fiscal issues. Additionally, geopolitical tensions continue to reinforce gold’s status as a safe-haven asset.

The U.S. dollar and Treasury yields have slightly retreated as investors remain cautious ahead of key economic data. This pause in the recent dollar rally and in yields has benefited gold prices. Today’s release of U.S. GDP data, followed by Thursday’s PCE report, the Federal Reserve’s preferred inflation gauge, and Friday’s nonfarm payrolls will provide clarity on U.S. economic conditions and influence market expectations for upcoming Fed rate decisions.

Demand for gold has surged, hitting a historic high in the third quarter. The continued strength of gold ETFs is expected to further support the precious metal’s higher valuation, maintaining a bullish outlook. Recent inflows into gold ETFs reflect growing investor confidence, with overall investment flows into gold on the rise. These conditions could potentially support a steady growth for gold toward the 3000 dollar per oz level in 2025.