Gold prices are poised for a seventh weekly gain, with the US government shutdown adding another layer of uncertainty for investors seeking clues about the Fed’s policy easing. After a five-day rally that pushed to a new record, profit-taking has stalled, but spot gold remains near $3,860/oz.
The delay in the government payroll release has left the market relying on private data to gauge the still-dim economic outlook. Data from Challenger, Gray & Christmas showed US corporate hiring weakened in September and layoffs eased. Chicago Fed President Austan Goolsbee acknowledged the data blackout makes it difficult to gauge the economic direction. Nevertheless, currency markets are nearly fully pricing in a 25-bps cut later this month and are widely anticipating another cut in December a lower interest rate environment that is generally positive for the non-yielding precious metal.
Gold has surged more than 45% this year, posting a string of all-time records and potentially its biggest annual gain since 1979, supported by central bank buying and a surge in gold-backed ETF holdings as the Fed cuts interest rates again. At 8:12 a.m. SGT, spot gold edged up 0.1% to $3,860.70; the Bloomberg Dollar Spot Index was steady. Silver weakened 0.2% to $46.90/oz after briefly breaking through $48, platinum was flat, and palladium strengthened. (ads)
Source: Bloomberg