Gold Surges to Record on Weaker Dollar, Risk of US Shutdown

Core Insights - Gold prices have reached a record high of $3,819.81 per ounce, driven by a weaker dollar and ongoing market tightness in precious metals [1][2] - The potential for a US government shutdown is influencing investor sentiment, as it could delay the release of key economic data [3][4] - The Federal Reserve's monetary policy outlook remains uncertain, with weaker employment figures potentially leading to interest rate cuts, making non-interest bearing precious metals more attractive [4][6] Price Movements - Gold surged by 1.6% to an all-time high, while silver increased by 2.4%, and both platinum and palladium also saw significant gains [2] - Gold has increased by 45% this year, supported by central bank demand and expectations of interest rate cuts [6] Market Dynamics - The dollar's decline makes precious metals cheaper for international buyers, contributing to the price surge [3] - Holdings in bullion-backed ETFs are at their highest since 2022, indicating strong investor interest [6] Economic Context - A potential government shutdown could threaten the release of important economic data, including payroll reports, which are expected to show subdued job growth [3][4] - Diverging views among Federal Reserve officials regarding monetary policy add to the uncertainty surrounding future interest rate decisions [4][5]