Gold snaps new high in record-setting rally; silver at 12-year peak

Gold and silver bars 

Gold prices climbed to a fresh record high today, Oct. 21, buoyed by uncertainty surrounding the US elections and the growing prospect of a Federal Reserve interest rate cut.

Spot gold prices gained 0.28%, or $7.50, to $2,727.84 an ounce at 8:20 am Makkah time, after hitting $2,732.73 earlier in the session, the highest level ever.

Further, bullion for December delivery increased by 0.51%, or $14.60, to $2,744.60 per ounce.

On the other hand, silver prices pared gains to rise 0.85% to $33.94 per ounce, after hitting a 12-year high of $34.08 apiece in early trading.

Tim Waterer, chief market analyst at KCM Trade, said, “$2,800 looks to be a viable year-end target... There will be temptation to lock in some profits, which could slow the immediate upside,” Reuters reported.

According to the CME FedWatch Tool, investors are pricing in a 92.6% chance of a 25-basis-point interest rate cut at the next Fed meeting, and a 7.4% chance of a hold.