Gold’s record-breaking rally continued during Thursday's Asian deals, with prices nearing US$4,250 per ounce as sustained safe-haven demand and a broadly weaker U.S. dollar kept the precious metal’s momentum intact.
By 4:00 pm AEDT (5:00 am GMT), spot gold was up 0.6% at US$4,234.21 per ounce.
The precious metal has now advanced for a fourth straight session, fuelled by renewed investor caution amid persistent U.S.-China trade tensions and growing unease over the U.S. economy’s resilience during the ongoing government shutdown.
Gold, often viewed as a traditional store of value, has also benefited from the dollar’s retreat as investors reassess the outlook for monetary policy and economic growth.
A U.S. Treasury official noted this week that the government shutdown could cost the economy as much as $15 billion per week, heightening market jitters.
Meanwhile, market expectations for monetary easing continue to build. Traders now assign roughly a 95% probability of interest rate cuts at the Federal Reserve’s October and December meetings, according to the CME Group FedWatch Tool.
