Gold Hits High on US Shutdown Fears, Bonds Steady
Gold touched a new record high and Treasuries held their gains as concerns mounted over a US government shutdown.
The precious metal, a traditional safe-haven asset, climbed above $3,839 an ounce, taking gains this year to 46%. Treasuries were little changed Tuesday after gaining across the curve in the prior session. A gauge of the dollar edged up after President Donald Trump set a 10% tariff on softwood timber and lumber imports into the US. Asian shares rose 0.3%, with gains in Hong Kong and mainland China.
Vice President JD Vance said he believes the US government is on track to shut down after Trump’s last-ditch meeting with top congressional leaders ahead of the Oct. 1 deadline ended without resolving Democrats’ demands.
Investors remain concerned that a shutdown could hinder some crucial data releases that they require to discern how the US economy is doing. That includes Friday’s nonfarm payrolls report, which would offer details on how the labor market is holding up and help the Federal Reserve decide on the path for rate cuts.
“Given the importance of the job market to the Fed’s rate-cutting decisions, risk that the September unemployment report could be delayed could add to the market’s anxiety over the direction of policy,” said Kathy Jones, chief fixed income strategist at Charles Schwab & Co.
Source : Bloomberg.com
