Gold rose to a record, nearing $4,000-an-ounce, as looming US interest rate cuts and the prospect of a prolonged federal government shutdown lifted demand.
The precious metal rallied as much as 1.5% to top $3,945 an ounce in the week’s opening session. The upswing, which follows a run of seven weekly gains, has lifted prices about 50% this year. Gold-backed exchange-traded funds swelled again last week.
The US shutdown has delayed key data, making a murky economic outlook more unclear. With a lack of official figures, traders are depending on private reports for signals, while the US central bank is also finding it challenging to assess changing conditions. Traders are still pricing in a quarter-point cut this month, which would benefit gold further as it doesn’t pay interest.
