Gold crosses $2,700 at settlement, hits fresh record

Gold bars

Gold prices extended gains at settlement today, Oct. 17, with renewed demand for safe-haven assets amid the escalating Middle East geopolitical tensions and the increasing uncertainty ahead of the US presidential elections.

Gold futures prices for December delivery added 0.60%, or $16.20, to close at $2,707.50 per ounce, the first record close this month and the 41st year-to-date.

This came although the US dollar index, which gauges the greenback's strength against a basket of six currencies, climbed by 0.20% to 103.80 points at 09:35 pm Makkah time, after dipping earlier in the session to 103.44 points.

Prices were supported by the European Central Bank's (ECB) third interest rate cut this year by a quarter of a percentage point, as the Eurozone inflation fell more than expected.

However, the yellow metal’s gains were capped by economic data showing a stronger US economy, with US retail sales in September rising more than Wall Street had anticipated. Further, the number of last week’s initial jobless claims retreated in contrast to forecasts.