FX.co ★ Gold Hits Fresh Record on US Shutdown

Gold surged to over $3,890 per ounce on Wednesday, reaching a new all-time high. This increase comes as the government shutdown in the United States heightened the demand for assets perceived as safe havens. The shutdown occurred following a partisan deadlock that prevented a funding agreement between Congress and the White House, thereby threatening thousands of federal jobs with a potentially prolonged deadlock. Market participants are paying close attention to the length of the shutdown, as it poses the risk of delaying significant economic reports, including the anticipated nonfarm payrolls data scheduled for release on Friday. This data is considered crucial ahead of the Federal Reserve's policy meeting at the end of October. In the labor market, August saw a slight rise in US job openings, while hiring activity decelerated, indicating a cooling job market which may provide the Federal Reserve with leeway to reduce interest rates. Currently, market expectations suggest a near-certain likelihood of a rate cut this month, with an estimated 76% probability of an additional reduction in December.