Gold Rises to Record of $4,050
Gold surpassed $4,050 per ounce on Wednesday to extend its record as economic uncertainty and a dovish Federal Reserve continued to drive markets away from the dollar toward precious metals.
The impasse between members of US Congress maintained the government shutdown in its second week, driving President Trump to threaten major layoffs for public workers.
The shutdown also prevented the release of key economic data, magnifying the impact of pessimistic labor market data from private sources, including back-to-back contractions from ADP payrolls and contractionary job indices in ISM PMI surveys.
Consequently, minutes from the FOMC’s last meeting showed that policymakers showed willingness to continue cutting rates this year due to fragility in the labor market.
Also, precious metals were also supported by concerns of sustained inflation, also voiced by the FOMC, which risked a sharper pivot away from dollar-denominated assets.
Source: Tradingeconomics.com
