Gold prices surged to record levels in the Asian trading session on Wednesday, driven by ongoing tensions and uncertainty surrounding the tight U.S. election and a shift in power in Japan, despite the conflict between Israel and Iran not escalating as much as expected.
Currently, spot gold is priced at $2,779.81 per ounce, reflecting a 0.3% increase, while gold futures for December rose 0.3% to $2,791.90 per ounce.
This surge is largely attributed to the political dynamics in both nations. In the U.S., Donald Trump and Kamala Harris are locked in a tight race with no clear victor in sight. Moreover, their vastly different economic plans contribute to the uncertainty surrounding future policies.
In Japan, the Liberal Democratic Party (LDP), which previously held a parliamentary majority, has lost its dominant position. The LDP is now seeking alliances with smaller parties, creating uncertainty that has impacted on the prices of gold and other precious metals.
Other metals have also experienced increases, with platinum futures rising 0.2% to $1,061.60 per ounce, while silver futures increased by 0.4% to $34.57 per ounce. However, benchmark copper futures on the London Metal Exchange remained flat at $9,560.50 per ton.
On the other hand, Goldman Sachs, a global investment bank based in the U.S., has slightly lowered its forecast for gold prices from $3,080 to $3,000 by December 2025. This prediction is mainly driven by strong demand from central banks that are concerned about U.S. financial issues and potential shocks to the national debt.
