Gold Sets New Record

Gold prices hit a historic high on Thursday, approaching $4,240 per ounce, marking a new record-breaking rally driven by multiple factors, most notably the safe-haven trend and growing expectations of a shift in US monetary policy.

Impact of Monetary Policy and Economic Indicators

Federal Reserve Chairman Jerome Powell's comments, which pointed to a decline in labor market indicators, were the primary catalyst for the current situation, reinforcing investor expectations of a monetary policy easing.

Current estimates indicate a greater than 90% chance of a 25 basis point interest rate cut at the next meeting, with additional cuts expected by December.

Government Shutdown and Its Implications

The risk of a prolonged government shutdown in the United States remains a drag on the economy, heightening tensions in global markets and prompting investors to hedge against risks by investing in safe-haven assets such as gold.

The Weak Dollar Boosts the Yellow Metal's Appeal

Expectations of a weaker dollar have also boosted gold's appeal, making it more attractive to buyers around the world, especially given its lower cost relative to other currencies.

The Impact of Geopolitical Factors

On the other hand, trade tensions between the United States and China continue to cast a shadow over markets. US officials recently criticized Beijing's tightening of restrictions on rare earth exports, warning of the impact on global supply chains.

US Treasury Secretary Scott Besant also announced the possibility of Washington imposing restrictions on Russian oil exports or imposing tariffs on Chinese oil imports, in coordination with Eurozone countries. This would add an additional layer of uncertainty to the global economic landscape.

Future Outlook

In light of these intertwined factors, the outlook appears set for continued investor interest in gold as a safe haven, with markets focusing on developments in the upcoming Federal Reserve meetings and the political and economic stances that could drive the precious metal further upward in the coming weeks.