Gold prices remained strong, trading near record highs. Expectations of Federal Reserve rate cuts and safe-haven demand fueled the climb. Economic data suggesting a potential slowdown in the labor market further bolstered the precious metal. Government shutdown uncertainty also increased demand for the asset.
- Gold hovered around $3,860 per ounce.
- The price remained near its record high.
- Federal Reserve rate cut expectations supported the price.
- Safe-haven demand supported the price.
- US private-sector employment declined in September.
- The September nonfarm payrolls report will be delayed.
- The US government is partially closed.
- A Supreme Court ruling may reduce concerns over the Fed’s independence.
The confluence of economic indicators and political factors creates a favorable environment for the asset. Weakening economic data strengthens the argument for monetary easing, making the non-yielding asset more attractive. Political uncertainty and government instability traditionally lead investors to seek safe harbors, further increasing demand and supporting the price of the asset. Even news suggesting greater stability within the central bank contributes to overall market confidence.