Gold powers towards US$4,000 as US government shutdown drags on
Sign up now: Get ST's newsletters delivered to your inbox
Gold has surged almost 50 per cent in 2025, spurred by the massive jolt of Trump-induced economic and geopolitical uncertainty.
PHOTO: REUTERS
Follow topic:
SINGAPORE – Gold rose to another record on Oct 6 – closing in on the US$4,000 an ounce mark – as the US federal government shutdown dragged on.
Bullion advanced as much as 1.2 per cent to US$3,932.02 an ounce. The disruption in the United States has delayed jobs data, which was due on Oct 3, making a murky economic outlook even more unclear.
With the lack of data, traders are depending on private reports for more clarity on the US economy, while the Federal Reserve is finding it challenging to make monetary policy decisions.
Rates traders are still pricing in a quarter-point cut for the end of October, which will benefit gold further as it does not pay interest.
Gold has surged almost 50 per cent in 2025, spurred by the massive jolt of economic and geopolitical uncertainty that President Donald Trump has brought to the market.
The Fed’s rate-cutting cycle and central bank purchases to diversify away from dollar assets have also been major tailwinds.
The fund flows have “been nothing short of remarkable”, said Phillip Nova analyst Priyanka Sachdeva. They are “a testament to how deeply embedded the ‘buy the dip in gold’ mindset has become”, she said.
Gold rose 1.1 per cent to US$3,930.75 an ounce as at 11.51am Singapore time on Oct 6 after capping a seventh weekly gain on Oct 3.
“(The) backdrop is intact with the Fed on the path to cut rates further, alongside the weakening labour market,” said Mr Ahmad Assiri, an analyst at Pepperstone Group.
But he added that “it feels like the risk-reward dynamics are shifting and a tactical pullback would be viewed as a healthy phase within an extended rally”. BLOOMBERG
