Gold surged to a new record high as investors turned to the safe-haven asset amid growing market speculation that Donald Trump would win the U.S. election. The price of bullion reached an all-time peak of around $2,730 per ounce just two weeks before the election.
Market sentiment has shifted, with rising bets on a Trump win. According to Polymarket, the Republican candidate has over a 60% chance of prevailing on November 5, compared to Kamala Harris’s 39%. Trump’s policies on tariffs, taxes, and immigration are viewed as potentially inflationary, making them unfavourable for bonds but supportive of the U.S. dollar. Additionally, he is perceived as more crypto-friendly.
Escalating tensions in the Middle East also buoyed gold prices, as Israel considered a response to Iran following a Hezbollah drone incident near Prime Minister Benjamin Netanyahu’s residence over the weekend.
Bitcoin saw gains as well, rising 0.5% to $69,080.72, after earlier touching its highest level since July at $69,487. The world’s leading cryptocurrency climbed 9.6% last week and is up more than 8% for the month.
Tony Sycamore, a market analyst at IG, noted, “It seems that Trump is now leading in key battleground states, suggesting he is well-positioned to regain the White House.
The markets began factoring this in last week with stronger equities, higher yields, a robust U.S. dollar, and bitcoin on track for a 10% weekly gain.”
