Gold Futures Surpass $4,000 Per Ounce Amid Economic Uncertainty
Gold futures prices climbed above $4,000 per ounce for the first time on Tuesday as investors sought stability amid an ongoing US government shutdown and broad economic instability.
By 9:10 a.m. ET, gold futures in New York reached $4,003, while the spot price for gold rose to $3,960.60 per troy ounce—the standard measurement for precious metals.
Demand for gold often increases during periods of economic turbulence as investors move toward more secure assets.
Gold, along with other metals like silver, has experienced significant gains over the past year, partly due to disruptions in the global economy caused by trade policies.
Peter Grant, vice-president and senior metals strategist at Zaner Metals, noted that "continued shifts toward safety are partly driven by the government shutdown, with little sign of a resolution in the near future."
Gold, which performs well in uncertain or low-interest-rate environments, has risen 52% this year. The increase has been fueled by expectations of lower interest rates, persistent political and economic instability, steady central bank purchases, investments in gold-related funds, and a weakened US dollar.
The US government shutdown continued into its seventh day on Tuesday, delaying the release of important economic data. As a result, investors have turned to unofficial sources to estimate the timing and scale of potential Federal Reserve rate cuts.
At the same time, political unrest in France and Japan continued to affect currency and bond markets for a second consecutive day.
Market expectations now suggest a 25-basis-point rate cut at the upcoming Federal Reserve meeting, with another possible reduction in December.
Reuters and Associated Press contributed reporting.
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