(Bloomberg) -- Gold climbed to a fresh record amid ongoing tensions in the Middle East as traders also weighed US data that kept alive bets on the Federal Reserve’s interest-rate cuts.
Bullion touched an all-time high of $2,696.78 as Israel said it killed Hamas leader Yahya Sinwar, the architect of the Palestinian group’s attack on southern Israel that triggered a year-long war in Gaza. Investors typically seek safety in the precious metal in times of geopolitical and economic uncertainty.
Earlier Thursday, data showed US retail sales strengthened in September by more than forecast in a broad advance. US jobless claims unexpectedly fell after jumping the previous week in Southeastern states affected by Hurricane Helene, according to the latest US Labor Department report.
The US economic readings added to a slew of mixed US economic readings recently, reinforcing gold traders’ expectations that the Fed will continue its rate-cutting path for the rest of the year.
“These were good data points,” said Bob Haberkorn, senior market strategist at RJO Futures. “I think the Fed wants to get rates lower and they probably have another quarter point coming here at the very least before the end of the year.”
Lower rates tend to benefit non-interest bearing bullion.
Gold is 1.4% higher this week, with investors repositioning portfolios ahead of the US election on Nov. 5. With both candidates posing different risks to the economy, gold likely will see further support — no matter whether Donald Trump or Vice President Kamala Harris wins.
Bullion — up more than 30% this year — is one of the strongest performing commodities. Rate-cut optimism fueled the most recent gains as the Fed kicked off its easing cycle last month. Strong central bank purchases have also supported gold.
Spot gold closed 0.7% higher to $2,692.71 an ounce in New York. Silver was little changed, platinum fell while palladium rose.
--With assistance from William Clowes and Sybilla Gross.
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