FX.co ★ Gold Near Record Highs on Weak Jobs Data, US Shutdown

Gold prices remained above $3,870 per ounce, approaching record highs, as investors assessed an unexpected decline in U.S. private employment combined with heightened demand for safe-haven assets due to the federal government shutdown. The latest ADP report revealed that U.S. businesses cut 32,000 jobs in September, contrary to forecasts of a 50,000 increase. This marked the first consecutive month of private sector job losses since 2020, and was the largest drop since March 2023, bolstering expectations that the Federal Reserve will continue reducing borrowing costs this year. In the meantime, Washington, D.C. suspended significant portions of its operations following partisan disputes that stalled a funding agreement, potentially triggering a prolonged standoff with implications for thousands of federal jobs. The shutdown may also delay key economic reports, including Friday's nonfarm payrolls data, a crucial consideration before the Federal Reserve's policy meeting in late October.