Jerusalem: Gold prices surged to a record high today, driven by investor demand for safe-haven assets after the official start of the US government shutdown and as soft labor data bolstered expectations of Federal Reserve rate cuts. Spot gold was up at $3,873.46 per ounce. Bullion logged about 12% rise in September, making it the metal’s sharpest monthly rise since August 2011. US gold futures for December delivery gained 0.4% to $3,888.80. Elsewhere, spot silver was steady at $46.64 per ounce, platinum held its ground at $1,573.76 and palladium fell 0.4% to $1,252.25.
According to Oman News Agency, the surge in gold prices is attributed to the growing uncertainty in the US economy as the government shutdown begins to take effect. Investors are increasingly turning to gold as a reliable store of value amid concerns about the potential economic repercussions of the shutdown. The soft labor data released recently has further fueled speculation that the Federal Reserve may consider cutting interest rates to stimulate economic growth, adding more momentum to the rise in gold prices.
The record high in gold prices highlights the metal’s status as a preferred investment during periods of economic instability. As other precious metals like silver and platinum remain steady, the focus remains on gold’s performance in the face of ongoing economic challenges. Palladium, however, experienced a slight decline, reflecting varied investor sentiment across different segments of the precious metals market.