Gold Rises to Near Record Levels. Why Trump Is a Factor.
By
Joseph Hoppe, Dow Jones Newswires
Gold futures were rising 0.3% to $2,763.30 a troy ounce with the precious metal close to its all-time high of $2,772.60/oz, set on Wednesday.
Gold is maintaining its strength despite rising U.S. Treasury yields and slightly easing geopolitical tensions, said Pepperstone research strategist Dilin Wu.
The driving force appears to be bets on a potential Trump victory in the U.S. presidential election, Wu said in a note. This is coupled with growing concerns over the escalating U.S. debt crisis. While both candidates advocate for expansionary fiscal policies, a sweep for Trump could see U.S. debt skyrocket by $7.5 trillion over the next decade, Wu said.
