Gold Prices Rise Amid Increasing Demand for Safe Haven

SadaNews - Gold has recorded a new record level at the beginning of the week, approaching the threshold of 4,000 dollars per ounce, benefiting from investors' demand for safe havens amid the ongoing government shutdown in the United States.

The precious metal rose to 3,932.02 dollars per ounce. The federal government shutdown has delayed the release of U.S. job data that was scheduled to be published on Friday, increasing uncertainty about economic forecasts.

In the absence of economic data, traders are relying on private reports for a clearer view of the economic situation, while the central bank finds it difficult to make monetary policy decisions. Interest rate traders still expect a quarter-point cut at the end of the month, which would benefit gold as a non-yielding asset.

Profiting from Political and Economic Ambiguity

Gold has risen by about 50% since the beginning of the year, driven by a massive wave of economic and geopolitical uncertainty triggered by U.S. President Donald Trump in the markets. Additionally, the cycle of interest rate cuts by the Federal Reserve and extensive purchases by central banks to diversify their assets away from the dollar have supported this increase.

Ahmed Al-Asiri, an analyst at Pepperstone, stated that "the fundamental conditions remain in place as the Federal Reserve continues its path of interest rate cuts, along with the weakness in the labor market," adding: "However, it seems that the dynamics of risk and returns are beginning to change, and any tactical decline in prices will be considered a healthy phase within the extended upward wave."

Gold rose by 1.1% to 3,930.75 dollars per ounce at 8:51 AM Singapore time, after finishing last Friday's trading with the seventh consecutive week of gains. Silver, platinum, and palladium prices also increased, while the Bloomberg Dollar Index rose by 0.3%.