1633 GMT – Gold futures rise 0.5% to $2,705.10 a troy ounce, having peaked at a new record of $2,712.70/oz in late European trading. The precious metal gained on sliding U.S. Treasury yields in the wake of inflation concerns, and renewed economic pessimism in China driving investors toward safe-haven assets, market watchers say. Hong Kong officials stated plans on Wednesday to develop the region into a gold trading hub, and the precious metal is becoming increasingly popular with developing economies looking to diversify their foreign reserves, SP Angel analysts say in a note. This can be seen in the huge builds of gold inventories by the likes of China, Russia and Turkey over the past few years, and with the BRICS summit set to begin next week—hosted by Russia—de-dollarization will be a key part of the agenda, SP Angel says. (joseph.hoppe@wsj.com)

Gold Futures Nearing Record Highs on Drop in U.S. Treasury Yields 1143 GMT – Gold futures rise 0.4% to $2,702.00 a troy ounce, just shy of its all-time record of $2,708.70 per ounce set in late September. Despite the strengthening U.S. dollar, the precious metal is still seeing strong demand, driven by sliding U.S. Treasury yields, the prospect of major central banks cutting interest rates, global economic uncertainty and geopolitical risks, says Ricardo Evangelista, senior analyst at ActivTrades. The main driver behind Thursday’s gains is likely the sharp fall in Treasury yields, with the 10-year note falling more than half a percentage point, Evangelista says. Speculation around a potential second Donald Trump presidency—with a focus on protectionist policies and the possible hit to trade and economic growth—has fuelled safe-haven demand, Evangelista says in a note. (joseph.hoppe@wsj.com)

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