Gold prices have reached a new record high, continuing a four-day rally as traders anticipate a potential US government shutdown. This uncertainty has increased demand for safe-haven assets like gold. Bullion prices climbed to $US3,875.53 an ounce, surpassing the previous peak set on Tuesday, as investors closely monitor the political gridlock in Washington.
A failure by Democrats and Republicans to reach a funding agreement by the midnight deadline would trigger the first government shutdown in almost seven years. Such a scenario could potentially delay the release of important economic data, including Friday’s non-farm payrolls report.
So far this year, bullion has surged by more than 47 per cent, positioning it for its most significant annual gain since 1979. Central bank purchases and growing investments in gold-backed exchange-traded funds (ETFs) have supported the rally as the Federal Reserve recommenced interest rate cuts. According to Bloomberg data, September saw the largest monthly ETF inflows in three years.
Spot gold was trading at $US3,872.21 an ounce, up 0.3 per cent, in Singapore on Wednesday. Silver also experienced gains, rising 1.7 per cent to $US47.4317 an ounce. Platinum and palladium similarly saw increases.
