Gold Prices Drop Amid Election Uncertainty

Gold prices experienced fluctuations on Thursday, retreating slightly after reaching a record high of $2,790.15 per ounce, but remain on track for their strongest monthly performance in seven months, with an increase of nearly 6% in October. Safe-haven demand, driven by uncertainties surrounding the upcoming U.S. presidential election between Donald Trump and Kamala Harris, has been a key factor in gold's appeal. Analysts note that geopolitical tensions and a 'buy-on-dips' market strategy are sustaining gold's value during this period of economic instability. Investors are closely monitoring upcoming U.S. inflation reports, particularly the core personal consumption expenditures (PCE) data, which could influence the Federal Reserve's interest rate decisions. Current forecasts show a 96% likelihood of a quarter-point rate cut next week, which is expected to further support gold prices. The World Gold Council reported a significant year-on-year increase in global gold demand, surpassing $100 billion for the first time in the third quarter, fueled by inflows into gold exchange-traded funds.