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Gold hits record high on U.S. government shutdown and Fed rate cut bets
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By Ishaan Arora(Reuters) -Gold prices hit a record high on Wednesday, supported by safe-haven demand as the U.S. government shut down most operations, while growing expectations of a cut to U.S. interest rates added to the metal's appeal.
Spot gold gained 0.8% to $3,886.97 an ounce by 1055 GMT after touching a record peak of $3,898.18.
Advertisement AdvertisementAdvertisement AdvertisementThe dollar weakened against a basket of other leading currencies, making dollar-priced gold more affordable for overseas buyers.
Advertisement AdvertisementAdvertisement AdvertisementNon-yielding gold, viewed as a safe-haven asset in times of economic and geopolitical uncertainty, thrives when interest rates are low.
Investors are pricing in a 95% chance of a rate cut this month, the CME FedWatch Tool shows.