gold price: Gold soars near record as US shutdown sparks rate-cut hopes

The closure of the US government has created more uncertainty for investors, and gold prices have increased on Friday and now goes to the seventh weekly earnings. The bullion remained above $ 3,885 only above $ 12, which has a high record of Thursday.

Gold rises quickly and technical indicators show that he had made excess purchases during the last month, making him vulnerable to a withdrawal. The closure of the US government delayed the payroll report on Friday, so investors are now using special data to understand the economy. Fed Bank of Chicago President Austan Goolsbee said that the closure would make it difficult for central bankers to interpret the direction of the economy, according to Bloomberg’s report.

Gold prices are rising while the US closure continues

Money markets are almost completely pricing in the cutting rate of a quarter -point Fed rate at the end of October and waiting for another in December. Lower rates usually help underneath that they do not pay interest. Gold has increased by 48% this year and reached the highest levels of all time, and since 1979, the largest year -old earnings.
Gold was supported by the Central Bank purchasing and more gold -supported ETFs, especially since the interest rate of the FED continues its interest rate deductions. In New York on Friday, Bloomberg Dollar Spot Index fell, while the spot gold was traded. Silver rose 2.1%.

Friday morning (GMT), Spot Gold, Thursday $ 3,896,49 $ breaking after the record was fixed to $ 3,859.69 per $. He won 2.7% this week. US gold futures for December delivery increased by 0.4% to $ 3.883. The closure of the US government entered its third day by delaying significant economic data, including Reuters’s report, including the out -of -farm payroll report.

Investors are waiting for the Fed Oran Discounts, Gold can reach $ 4,000

Alternative data from public and special sources show that the US business growth is slow in September and that there is no change in sluggish recruitment and unemployment rates. UBS analyst Giovanni Staunovo said that these data show that the Fed should reduce the rates of the FED and that gold can violate $ 4,000/OZ by the end of the year.

Investors are pricing a chance of a 25 -year Fed rate decrease in October 97% and 88% in December. Federal Reserve Bank Dallas President Lorie Logan said that the FED took action to protect the labor market with last month’s deduction, but should remain “cautious”. In India, the demand for physical gold increased this week despite recorded high prices, while Chinese markets were closed for holidays. Other metals rose: Spot silver rose to 0.7%.

FAQ

Quarter. Why does the gold price rise this week?

Gold is increasing because the closure of the US government creates uncertainty, and investors are waiting for more Fed rate deduction.

S2. Will Gold reach $ 4,000 per year this year?

Experts, low interest rates and US business growth due to the end of the year until the end of the year can reach $ 4,000, he says.