- Shutdown halts critical economic data, affects federal workers
- Moderate US job openings, weak hiring signal job market strain
- Gold benefits from jitters over soft dollar, political situation
Oct 1 (Reuters) - Gold prices surged to a record high on Wednesday, driven by investor demand for safe-haven assets after the start of the U.S. government shutdown and as soft labour data bolstered expectations of Federal Reserve rate cuts.
Spot gold was up 0.1% at $3,860.13 per ounce, as of 0613 GMT, after hitting an all-time high of $3,875.32.
U.S. gold futures for December delivery gained 0.4% to $3,887.40.
The dollar index fell to an over one-week low, making greenback-priced gold more affordable for overseas buyers. Wall Street futures slipped.
Gold is benefiting from "concerns over a weaker dollar, and the political situation with the standoff about a government shutdown in the U.S. and also general geopolitical uncertainty," said Nicholas Frappell, global head of institutional markets at ABC Refinery.
He added that the outlook remains bullish, with upside targets pointing to $3,900-plus, possibly up to $4,000.
The U.S. government shut down much of its operations as deep partisan divisions prevented Congress and the White House from reaching a funding deal, setting off what could be a long, grueling standoff that could lead to the loss of thousands of federal jobs.
Gold is benefiting from "concerns over a weaker dollar, and the political situation with the standoff about a government shutdown in the U.S. and also general geopolitical uncertainty," said Nicholas Frappell, global head of institutional markets at ABC Refinery.
He added that the outlook remains bullish, with upside targets pointing to $3,900-plus, possibly up to $4,000.
The U.S. government shut down much of its operations as deep partisan divisions prevented Congress and the White House from reaching a funding deal, setting off what could be a long, grueling standoff that could lead to the loss of thousands of federal jobs.
Markets in China, the world's largest gold consumer, remained closed for the mid-autumn festival and will reopen on October 9.
Elsewhere, spot silver gained nearly 0.5% to $46.90 per ounce, hitting a more than 14-year high. Platinum fell 0.7% to $1,563.50, while palladium was down 0.9% at $1,245.43.
Reporting by Anmol Choubey and Anjana Anil in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu
Source: Reuters