Gold repeatedly breaks record as price pushes on from $2,700

NEW YORK (October 21) Gold repeatedly broke record highs on Monday as the yellow metal moved further on from US$2,700 an ounce mark.

Having surpassed the mark for the first time on Friday, the spot price of the yellow metal climbed further as this week’s trading got underway, gaining 0.26% to reach US$2,729.

Peaks at US$2,733 and US$2,737 earlier on in the day had seen gold set several new records, leaving gains for the year at 38% so far.

Tensions in the Middle East have buoyed the price of gold, with ever-growing attention on November’s US presidential election providing upward pressure most recently.

“It is hard to see this dynamic changing substantially over the next couple of weeks,” ING Think economists commented.

AJ Bell analyst Russ Mould noted Monday's rise came as betting markets swung in favour of victory for Donald Trump in the November election.

“Gold typically attracts investors’ attention when they are looking for a store of value during uncertain times,” Mould said.

“Trump winning the US presidential election would raise the risk of a trade war and his provocative nature could lead to heightened uncertainty on the markets.

“Owning gold is essentially an insurance policy against unknowns.”

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