On the morning of October 30, the gold price soared to a record high of $2779.88/ounce. This increase is primarily due to safe-haven demand from investors amid escalating Middle East conflicts and economic instability in the U.S.

Middle East Conflict Tensions

The airstrikes by Israel in Gaza have caused severe casualties, particularly among children, prompting criticism from the U.S. government. This heightened tension raises concerns about stability in the region, driving many investors to seek gold as a safe asset.

Economic Instability in the U.S.

In addition to Middle Eastern conflicts, U.S. economic data indicates that job numbers have dropped to their lowest level since 2021. This situation could pave the way for the Federal Reserve (Fed) to consider reducing interest rates. Typically, lower interest rates support gold prices by reducing the opportunity cost of holding non-yielding assets.

U.S. Presidential Election Landscape

The tension ahead of the U.S. presidential election on November 5 has increased demand for safe-haven assets, contributing to the rise in gold prices. Just prior, the price of gold reached a historic high of $2781.59/ounce, reflecting strong investor interest amid election outcome concerns.

Market Expectations

Currently, investors are awaiting important economic data, including employment and GDP reports, to assess the Fed’s potential actions. Additionally, gold buyers in India are hopeful for profits from the price surge, especially during the festive season when gold demand typically rises.