Gold’s record rally pauses as US dollar ticks up
The US government has shut down much of its operations, potentially putting thousands of federal jobs at risk
[BENGALURU] Gold eased on Thursday (Oct 2) from the record high hit the day before, pressured by profit-taking and a slight uptick in the US dollar, although expectations of further US rate cuts and political uncertainty lent some support to prices.
Spot gold was down 0.2 per cent at US$3,858.50 per ounce, as at 9.18 am, after hitting an all-time high of US$3,895.09 on Wednesday.
US gold futures for December delivery fell 0.4 per cent to US$3,883.60.
The US dollar index was up 0.1 per cent against its rivals, making gold more expensive for other currency holders.
Data showed that US private payrolls fell by 32,000 jobs in September after a downwardly revised 3,000 decline in August.
The US government has shut down much of its operations, potentially putting thousands of federal jobs at risk, after partisan divisions prevented Congress and the White House from reaching a funding deal.
The shutdown could delay the release of economic indicators, including the closely watched non-farm payrolls (NFP) report scheduled for Friday.
Meanwhile, Wall Street’s main stock indexes closed higher on Wednesday as investors looked past weaker-than-expected private payrolls data and uncertainty around the first day of the US government shutdown.
Chicago Fed president Austan Goolsbee said that he is starting to get more concerned about inflation, making him want to be “careful” about lowering interest rates.
Traders are pricing in a near-certain 25 basis-point cut to the Fed’s key interest rate this month, according to the CME FedWatch tool.
Gold, often used as a safe store of value during times of political and financial uncertainty, thrives in a low interest rate environment.
The US Supreme Court said that it would hear arguments in January over Trump’s attempt to remove Fed governor Lisa Cook.
Elsewhere, spot silver slipped 0.5 per cent to US$47.07 per ounce, platinum fell 0.3 per cent to US$1,552.05 and palladium gained 1 per cent to US$1,256.93. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
