GOLD HITS RECORD HIGH AS U.S GOVERNMENT SHUTS DOWN – Weak jobs data lift safe-haven rush FS
Gold hit a record high as investors sought safe-haven assets amid growing risks of a U.S. government shutdown. At the same time, weak labour data strengthened expectations of further interest rate cuts by the Federal Reserve.
Spot gold rose 0.4%. U.S. gold futures for December delivery gained 0.7%.
The dollar index hovered near a one-week low, making dollar-priced gold more affordable for overseas buyers.
Gold is benefiting from “concerns over a weaker dollar, and the political situation with the standoff about a government shutdown in the U.S. and also general geopolitical uncertainty,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
Gold, a traditional hedge against economic and political uncertainty, thrives in a low-interest-rate environment due to its non-yielding nature. It has gained more than 47% this year.
Elsewhere, spot silver gained 1.5%, hitting a more than 14-year high. Platinum rose 1.4%, while palladium was up 0.9%.
