Gold prices hit record highs as U.S. shutdown begins
Gold prices surged to fresh records in Asian trade on Wednesday as the U.S. government entered a shutdown after Congress failed to pass new funding.
Spot gold touched an all-time high of $2,875.53 an ounce, while December gold futures spiked to $3,903.45. By 00:22 ET (04:22 GMT), spot prices eased slightly to $3,862.22.
U.S. government shutdown fuels safe-haven demand
The shutdown began at midnight Tuesday (0400 GMT Wednesday) after a Republican-backed spending bill failed to clear the Senate, facing opposition from Democrats.
Growing political gridlock in Washington pressured the dollar and boosted safe-haven demand, sending gold to multiple record highs this week.
Other precious metals also advanced strongly. Platinum and silver hit their highest levels in over a decade. Spot silver gained 0.9% to $47.05, while spot platinum slipped 0.3% to $1,572.18.
Industrial metals saw mixed moves. London copper futures inched down 0.1% to $10,278.10 per ton, while COMEX copper futures fell 0.7% to $4.8450.
Jobs data delay expected amid shutdown
The government shutdown is set to delay the release of key U.S. economic data. September’s nonfarm payrolls report, scheduled for Friday, may be postponed if agencies remain closed.
The labor market reading is closely watched after recent signs of cooling, which influenced the Federal Reserve’s September rate cut.
However, expectations for further cuts have weakened after hawkish remarks from Fed officials. Dallas Fed President Lorie Logan said the labor market must weaken further before additional rate cuts are considered.
