Asianfin -- Gold prices reached a new record on Wednesday, driven by safe-haven demand ahead of the U.S. election and anticipation surrounding key economic data that could signal the Federal Reserve’s next rate move. Spot gold climbed to $2,789.86 an ounce, surpassing Tuesday’s high. Meanwhile, the Bloomberg Dollar Index broke its three-day streak of gains as markets awaited U.S. GDP data, due later Wednesday. A weaker GDP figure could bolster the argument for further Fed rate cuts, with officials set to meet on November 6-7. Lower rates are generally advantageous for gold, a non-yielding asset.

The metal has surged over 30% this year, fueled by central-bank purchases and heightened safe-haven demand amid conflicts in the Middle East and Ukraine. With the tight U.S. presidential race between Kamala Harris and Donald Trump only days away, political uncertainty is further supporting gold's appeal.

“Market positioning is high in anticipation of both the election and potential Fed rate cuts, as well as broader geopolitical and economic uncertainty,” noted Suki Cooper, analyst at Standard Chartered Plc. “Under a Trump victory, markets are focusing on the potential for broader tariffs and the inflationary pressures they may create.”