Bank of America: Investors buy gold in droves ahead of U.S. election

Michael Hartnett, a strategist at Bank of America, said investors continued to buy gold in large quantities ahead of the U.S. election as a hedge against the possibility of inflation rising again. Gold prices hit a record high on Wednesday, and gold funds recorded their largest weekly inflows since July 2020. Other popular trades recently, such as selling bonds and buying artificial intelligence stocks, have maintained momentum ahead of the November 5 election. This week, the yield on the 10-year U.S. Treasury bond briefly broke through 4.2%, the highest level since July last year, while Nvidia's stock price also hit a record high. Gold trading is part of a broader strategy for investors to allocate portfolios in the event that Trump may win the election. The dollar also rebounded as investors bet that a victory for the Republican candidate will trigger a rebound in inflation and a rise in the budget deficit. (Jinshi)