Gold prices hit a record high on Wednesday, driven by increased demand for safe havens following the official start of the US government shutdown, along with weak labor market data that reinforced expectations of further interest rate cuts by the Federal Reserve.
Gold rose 0.8% in spot trading to $3,892.21 an ounce , while December futures climbed 1.1% to surpass $9,316 , as markets awaited the fallout from the political crisis in Washington.
At the same time, the US dollar index fell to near its lowest level in a week, making the precious metal more attractive to international investors, while US stock futures on Wall Street declined.
Market experts believe that gold remains supported by the decline of the dollar and political and economic uncertainty, with expectations that it will reach $4,000 an ounce if the US government crisis continues, despite warnings of potential risks associated with the return of dollar strength or the tightening of the Federal Reserve's monetary policy.
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