Gold Shines Amid Crises.. Best Monthly Performance Since 2011

SadaNews Economy - Gold recorded a new record level today, Tuesday, heading towards achieving its best monthly performance since August 2011, supported by fears of a potential U.S. government shutdown and increasing bets on interest rate cuts.

The precious metal rose in spot transactions to reach $3867.45 per ounce, while U.S. December futures for gold increased by 0.9% to $3893.50.

Thus, gold has achieved monthly gains of 11.4% so far in September, marking the strongest monthly rise in over 14 years.

This performance comes amid stalled negotiations between U.S. President Donald Trump and the Democrats to avoid a government shutdown that could disrupt many services, alongside economic data that bolstered market expectations that the U.S. Federal Reserve will proceed with interest rate cuts this year. The CME Group's "FedWatch" tool indicates that traders are assigning a nearly 89% chance to a new cut of 25 basis points in the upcoming Fed meeting.

Gold is considered a safe haven for value during times of political and financial turmoil and typically thrives in a low-interest-rate environment.

In other precious metals, silver remained steady at $46.95 per ounce, while platinum fell by 0.2% to $1597.58, and palladium dropped by 0.8% to record $1259.02.