Gold Remains Strong Near Record Highs Amid Global Uncertainties

Gold prices surged to unprecedented levels Monday afternoon, defying traditional market pressures from a strengthening dollar and rising treasury yields. The precious metal continues to attract investors seeking safety amid escalating Middle East tensions and uncertainty surrounding the upcoming U.S. presidential election.

December gold futures climbed US$8.10 to US$2,738.10 per ounce, building on Friday's record close of US$2,730.00. This rally comes as markets anticipate the Federal Reserve's expected interest rate cut in May, which would reduce the opportunity cost of holding non-yielding assets like gold.

Multiple factors are driving gold's stellar performance. The ongoing conflict between Israel and Hamas in Gaza, along with tensions in Lebanon, has intensified safe-haven demand. Additionally, polls indicating a highly competitive U.S. presidential race scheduled for November 5 have added to market uncertainty.

"Gold continues to hit fresh record highs," Saxo Bank analysts noted, attributing the momentum to "Middle East tensions, growing concerns about a rising US debt pile, and the closest US election in generations."

Meanwhile, other market indicators moved in opposing directions. The ICE dollar index advanced 0.45 points to 103.959, while Treasury yields also increased. The two-year note yield rose 6.7 basis points to 4.032%, and the 10-year note yield climbed 9.5 points to 4.177%.

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