FX.co ★ Gold Holds Near Record High

On Tuesday, gold prices remained at approximately $3,960 per ounce, nearing a record high previously achieved earlier in the session. This increase is propelled by ongoing economic uncertainty and the anticipation of additional interest rate cuts by the United States. The persistent US government shutdown has escalated concerns, with the White House indicating the possibility of extensive federal worker layoffs. This situation has deprived investors of crucial data necessary for evaluating the US economy's health, further complicating the Federal Reserve's decision-making process. Nevertheless, market participants are factoring in a 25 basis point reduction later this month, with another decrease expected in December. Concurrently, political upheavals in France and Japan are amplifying fiscal concerns and fueling the surge in gold prices. This year, the precious metal has risen by 50%, driven by sustained safe-haven demand, anticipated easing by the Federal Reserve, robust central bank purchases, increased inflows into ETFs, and broad-based dollar weakness.