FX.co ★ Gold Tops $4,000 on Safe-Haven, Fed Bets

Gold surged past the $4,000 per ounce mark on Wednesday, establishing a new benchmark as investors sought refuge in the face of global economic uncertainties and a dovish stance from the Federal Reserve. The ongoing US government shutdown, now entering its second week, has hindered the release of crucial economic data, complicating evaluations of the nation's economic condition. Despite this uncertainty, market participants are anticipating 25-basis-point interest rate cuts for both October and December. At the same time, political instability in France and a recent leadership transition in Japan are contributing additional layers of unpredictability to the global markets. This year, gold has risen by over 50%, fueled by trade disputes, geopolitical tensions, and a weakened US dollar. Central banks have consistently been active buyers, and the recent Fed rate reduction has further spurred investments in gold-backed exchange-traded funds (ETFs). In September, bullion-backed ETFs experienced their largest monthly inflow in over three years.