Gold hits record high, heads for best month in 14 years on safe-haven rush
Bullion has risen 11.4% so far in September, on track for its best month since August 2011
[BENGALURU] Gold prices rose further to hit a fresh high on Tuesday (Sep 30) and were poised for their best month in 14 years, as fears of a potential US government shutdown and growing expectations of further US interest rate cuts boosted demand for the safe-haven metal.
Spot gold was up 0.2 per cent at US$3,842.76 per ounce, as at 0123 GMT. Bullion has risen 11.4 per cent so far in September, on track for its best month since August 2011.
US gold futures for December delivery gained 0.4 per cent to US$3,872.
US President Donald Trump and his Democratic opponents appeared to make little progress at a White House meeting aimed at heading off a government shutdown that could disrupt a wide range of services as soon as Wednesday.
Recent economic data has lifted expectations for further US Federal Reserve rate cuts this year, with traders pricing in a roughly 89 per cent chance of a 25-basis-point reduction at the next Fed meeting, according to the CME Group’s FedWatch tool.
St Louis Federal Reserve president Alberto Musalem said that he was open to further rate cuts but the Fed must be cautious and keep rates high enough to continue to lean against inflation.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Gold, often used as a safe store of value during times of political and financial uncertainty, thrives in a low interest rate environment.
Investors now await US data on job openings, private payrolls, the ISM manufacturing PMI and Friday’s non-farm payrolls report for further clues on the economy’s health.
The US Labor Department confirmed on Monday that its statistics agency would suspend economic data releases, including the closely-watched monthly employment report for September, in the event of a partial government shutdown.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6 per cent to 1,011.73 tonnes on Monday from 1,005.72 tonnes on Friday.
Elsewhere, spot silver was steady at US$46.95 per ounce, platinum eased 0.2 per cent to US$1,597.58 and palladium fell 0.8 per cent to US$1,259.02. REUTERS
Share with us your feedback on BT's products and services
