Precious metal Gold price climbs to record high

A few weeks before the US presidential election, the price of gold has risen to a record high. On the London Stock Exchange, the price of a troy ounce (approx. 31.1 grams) climbed to 2,688 US dollars.

The price of gold thus exceeded the previous record set at the end of September by around three dollars.

It remains to be seen who will win the US election on November 5 - Republican Donald Trump or Democrat Kamala Harris. In view of the unclear outlook for US economic policy, investors are continuing to turn to gold, which is often sought after in uncertain times.

In addition, the recent fall in oil prices has dampened concerns that inflation could pick up again more significantly. From an investor's perspective, this also gives central banks more leeway to cut interest rates - and low interest rates generally boost demand for gold. Investments in fixed-term deposits, for example, are then less attractive.

If interest rates also fall in the US, this can weigh on the dollar and make gold - which is traded in dollars - more attractive to buyers from other currency areas. In addition, the situation in the Middle East remains tense.