Safe-Haven On: Gold Maintains Record Trend
Gold prices held steady around $3,859–$3,860/oz, just about $35 below Wednesday's record, after a five-day rally. The onset of the US government shutdown and weak ADP data have led market participants to increase bets that the Fed will cut interest rates again this year.
The shutdown risks creating a blackout for official data—including delayed non-farm payrolls—making economists and traders increasingly reliant on non-government indicators. Expectations of lower interest rates and potential pressure on the US dollar have added support to gold, which benefits as a non-yielding asset when borrowing costs fall.
So far this year, gold has surged about 47%, potentially marking its best annual performance since 1979. The rally has been driven by central bank buying and a surge in gold-backed ETF holdings—September's inflows were said to be the largest in three years, including increased interest from Chinese investors.
At 8:10 a.m. Singapore time, spot gold edged down 0.2% to $3,859.22/oz, while the Bloomberg Dollar Spot Index was flat. Silver weakened after hitting a 14-year high in the previous session; platinum and palladium also fell. Concerns about the Fed's independence also maintained demand for safe-haven assets amid rising policy tensions. (Ads)
Source: Newsmaker.id
