Gold Reaches Historic Level, Approaching $3,843 per Ounce
Gold reached a historic level on Tuesday, nearing $3,843 per ounce, as the precious metal heads towards its best monthly performance in 14 years. This surge is attributed to concerns over a potential US government shutdown and heightened expectations of further interest rate cuts by the US Federal Reserve.
At 01:23 GMT, spot gold rose 0.2% to $3,842.76 per ounce. Since the beginning of the month, the precious metal has gained 11.4%, approaching its best monthly performance recorded in August 2011.
Meanwhile, December gold futures contracts increased by 0.4%, reaching $3,872 per ounce.
The political situation in the US remains fragile, as President Donald Trump failed to make progress in his meeting with Democrats to avoid a partial government shutdown, which would paralyze many public services.
On the economic front, recent data has fueled expectations of another interest rate cut by the Federal Reserve this year. According to the CME's FedWatch tool, the probability of a 25-basis-point reduction at the next meeting is approximately 89%.
Gold continues to benefit from its status as a safe-haven asset in a context of low interest rates and political and economic uncertainties.
Investors are now awaiting US employment market data, scheduled for release on Friday, which could shed light on the state of the economy.
Regarding other precious metals, spot silver remains at $46.95 per ounce, while platinum falls 0.2% to $1,597.58 per ounce and palladium drops 0.8% to $1,259.02 per ounce.
