Markets rebound as investors cheer potential end to US government shutdown

Pedro Goncalves writes:

Gold prices climbed to a two-week high on Monday as investors bet signs that the U.S. economy is weakening could prompt the Federal Reserve to cut interest rates next month and overshadow progress toward ending the government shutdown in Washington.

At the time of writing, gold futures rose 1.8% to $4,084.20 per ounce, while spot gold rose 2% to $4,080.07 per ounce.

“Gold is receiving strong bidding from traders to start the week, with the precious metal rallying on expectations of a rate cut next month, although the Fed has downplayed that possibility,” said Tim Waterer, chief market analyst at KCM Trade.

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