country
EN
Gold rallies for sixth day on US rate bets and shutdown concerns
['Oct']
Moneyweb
Gold gained — following a five-day rally that saw it reach new records — as the US government shut down and traders added to bets on Federal Reserve interest-rate cuts following weak private payrolls data.
Non-farm payroll numbers, which were due Friday, will be delayed because of the shutdown — which also risks increasing pressure on the dollar.
Traders have added to bets the Fed will cut rates twice more this year to support a weakening labor market.
Lower borrowing costs tend to boost non-yielding gold, which also becomes cheaper for most buyers when the greenback softens.
The rally has been supported by central-bank buying and rising holdings in gold-backed exchange-traded funds, as the Fed resumed rate cuts.