FX.co ★ Gold Reaches New All-Time High

Gold prices surged to a new all-time high of $3,840 on Tuesday, driven by escalating concerns over a potential US government shutdown and increased anticipation of further interest rate reductions by the Federal Reserve. Discussions between President Donald Trump and congressional leaders on Monday concluded without reaching an agreement on temporary funding measures, heightening the likelihood of a shutdown as current funding is set to expire at midnight on Tuesday. Without a resolution, a shutdown would commence on Wednesday, which could delay the publication of significant economic data, including the September nonfarm payrolls report. Markets are also on edge due to the impending introduction of new US tariffs on heavy trucks, patented drugs, and other products, scheduled for Wednesday. Furthermore, Friday's US PCE inflation data aligned with expectations, solidifying market speculation that the Federal Reserve might implement additional rate cuts during its two remaining policy meetings this year.