The price of %Gold is at an all-time high as growing uncertainty about the outcome of the U.S. presidential election and peaceful transition of power bolsters demand for the safe haven asset.
Spot gold prices are up 0.5% and at a record high of $2,688.82 U.S. per ounce. U.S. gold futures are trading at a record $2,702.20 U.S. an ounce.
Analysts say gold is also getting a lift from expectations of more interest rate cuts by the U.S. Federal Reserve this year.
The American central bank is widely expected to lower interest rates 25-basis points at each of its two remaining policy meetings this year.
The price of gold bullion has now increased more than 30% this year in a record rally.
The buying of gold has been driven by expectations for lower interest rates and amid strong buying from central banks due to geopolitical uncertainties, including the U.S. election.
Gold’s latest record high comes as the European Central Bank (ECB) again lowered interest rates by 25-basis points, its first back-to-back rate cut in 13 years.
Lower interest rates and geopolitical tensions tend to support gold, which yields no interest and is considered a safe have asset in times of turmoil.
Despite its record run this year, gold’s price is expected to continue trending higher.
The London Bullion Market Association recently forecast that gold’s price will rise to $2,941 U.S. a troy ounce over the coming 12 months.