There are several key reasons why gold prices continue to trend higher:
1. Geopolitical tensions: escalating Middle East tensions have boosted demand for gold as a safe haven asset.
2. Overall weakness in the US dollar on Friday after three consecutive weeks of gains: the DXY Index recently moved lower and a decline in the dollar made gold more attractive to investors using other currencies.
3. Interest rate cut expectations: investors earlier speculated that the Federal Reserve may start cutting interest rates sooner than previously expected. This increased the appeal of gold, which is a non-yielding asset.
4. Technical factors: additional buying was triggered when gold broke above the psychologically important $2,100/oz mark. Before taking out the $2,500 level, the price action was locked in a sideways trend from April 12 to July 26. After the breakout, the uptrend continued.
As for the connection with the upcoming US presidential election, this may be indirectly related to overall market uncertainty. The election, as a major political event, could contribute to uncertainty, prompting investors to seek refuge in safe haven assets such as gold.