“Gold sets historic record at $3800 per ounce: what’s the reason?Gold prices reached $3800 per ounce due to fears of a US government shutdown and expectations of interest rate cuts by the Fed. Silver and platinum also saw significant gains, supported by a weakening dollar.
”, — write: unn.ua
DetailsIn Asian trading on September 29, the value of spot gold reached $3,799.41 per ounce, and December futures set a new high of $3,828.40. Demand for “safe-haven” assets surged as investors prepared for a possible halt in funding for federal agencies in the US.
The rally was not limited to gold: silver jumped more than 2%, setting a 14-year record of $47.03 per ounce, while platinum rose 3% to $1,619.78 – its highest level in 12 years. The market was also supported by a weakening dollar after the release of inflation data, which fueled expectations of Fed rate cuts.
Gold price breaks historical maximum amid expectations of Fed rate cut16.09.25, 10:58 • 3473 views
The main risk for the markets is a potential “shutdown.” The funding deadline for the US federal government expires at midnight on September 30, and no compromise has yet been reached between Democrats and Republicans. Negotiations are complicated by disputes over healthcare spending. The situation is so tense that a meeting of congressional leaders with President Donald Trump is scheduled for Monday to find a way out of the crisis.
A government shutdown could not only delay the release of important labor market data but also negatively affect economic activity if the political stalemate drags on.
RecallDespite the previous increase in the value of monetary gold as a method of saving money, its popularity as a jewelry metal has significantly decreased. As noted in a comment for UNN by financial expert Olena Sosedka, this was most reflected in key markets – India and China.
Gold prices in the global market have become so high that it has reduced the popularity of buying gold jewelry. This was most reflected in such key markets as India and China, but a global decline in demand is felt all over the world. Due to the rising price, former fans of gold jewelry are increasingly preferring other precious metals. Instead, gold is more often considered as a way to preserve capital in conditions of economic instability and high inflation. And not as an item of everyday use
Ahead of the weekend, gold prices on September 24 remained near historical highs as markets cautiously reacted to statements by the head of the US Federal Reserve.