Gold Prices Shatter Records, Surpassing $4,000 Amid US Government Shutdown and Global Instability
Gold Prices Shatter Records, Surpassing $4,000 Amid US Government Shutdown and Global Instability
Gold futures have surged past the unprecedented $4,000 per ounce mark, hitting a new record high on Tuesday as investors aggressively seek safe havens amidst a prolonged US government shutdown and escalating global economic uncertainty. Trading at $4,003 per ounce in New York as of 9:10 AM ET, the precious metal’s rally underscores deep market anxieties.
The price surge comes as the US government shutdown enters its seventh day, fueling concerns over economic stability and delaying the release of critical financial indicators. This forces investors to rely on alternative data to anticipate future Federal Reserve interest rate decisions, with a 25-basis-point cut expected later this month and another in December.
Analysts attribute gold’s remarkable 52% climb this year to a confluence of factors, including expectations of rate cuts, persistent political and economic instability, robust central bank purchases, significant inflows into gold-backed funds, and a weakening dollar. Peter Grant, senior metals strategist at Zaner Metals, highlighted the “ongoing safe-haven flows stemming in part from the government shutdown and no real indication that it is likely to be resolved in the immediate term here.”
Adding to the market’s jitters, political turmoil in France and Japan has also gripped currency and bond markets for a second consecutive day, further driving investors towards tangible assets like gold and silver.
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