Gold values soar to unprecedented peak.
With the U.S. presidential election approaching rapidly, the cost of gold has reached an unprecedented peak. In London, the cost for a troy ounce (approximately 31.1 grams) soared to an astounding $2,688, surpassing the earlier record set in late September by a modest $3.
The future winner of the U.S. election on November 5th, between Republican nominee Donald Trump and Democratic candidate Kamala Harris, remains unpredictable. In light of the ambiguous forecasts for U.S. economic policies, investors continue to gravitate towards gold, often seen as a safe haven during times of instability.
Moreover, the recent descent in oil prices has alleviated fears of renewed inflation. This enables central banks to lower interest rates further, which typically sparks increased demand for gold. Take, for example, fewer incentives for investing in fixed-term deposits.
If interest rates in the U.S. decline, it could potentially undermine the dollar's value, making gold, an asset traded in dollars, more appealing to buyers using foreign currencies. Furthermore, geopolitical tensions persist in the Middle East.
In response to these economic and geopolitical factors, the Commission may find it necessary to adopt the implementing acts referred to in Article 11 (2), aiming to regulate the gold market for ensuring market integrity and investor protection. As the election results unfold and gold demand continues to rise, the implementing acts could significantly shape the gold trading landscape.
