Gold Hits Record High, US Shutdown Panicks Investors
Gold prices hit a new record high of $3,875.53 per ounce, buoyed by market concerns over the official start of the US government shutdown. This marks the fifth consecutive day of gold gains, as the market increasingly looks to safe-haven assets amid uncertainty. The shutdown has the potential to delay the release of important data such as nonfarm payrolls, which market participants are eagerly awaiting.
So far this year, gold prices have surged more than 47%, and are on track for their best year since 1979. This price surge has been driven largely by large purchases by central banks and strong inflows into gold-backed ETFs. Bloomberg data shows that gold ETF inflows in September were the highest in three years.
The market is also monitoring conflicting statements from Fed officials. Boston Fed President Susan Collins said an interest rate cut may still be necessary due to the weakening labor market. However, Dallas Fed President Lorie Logan believes a rate cut should be delayed because inflation has not yet fallen to target.
Meanwhile, silver prices also rallied, rising 2% to $47.55 per ounce—only about 5% below its record high. So far this year, silver has risen more than 60%, supported by market concerns, high demand, and still-constrained global supply. (ads)
Source: Bloomberg.com
