Gold prices hit record high, nears $4,000/oz mark on safe-haven demand
Oct 8 (Reuters) - Gold prices climbed to an all-time high on Wednesday, nearing the crucial $4,000-per-ounce level, bolstered by economic and geopolitical uncertainty and expectations of additional interest rate cuts by the U.S. Federal Reserve.
FUNDAMENTALS
Spot gold XAU= was up 0.3% at $3,995.14 per ounce, as of 0044 GMT, after hitting a fresh high of $3,999.09 earlier in the session.
U.S. gold futures GCcv1 for December delivery gained 0.3% to $4,016.30.
Americans grew more worried about the future of the job market in September, while at the same time bumping up projections for the future path of near-term inflation, a report from the Fed Bank of New York said on Tuesday.
The U.S. government shutdown entered its seventh day on Tuesday, and has postponed the release of key economic indicators, forcing investors to rely on secondary, non-government data to gauge the timing and extent of Fed rate cuts.
Markets are pricing in additional 25-basis-point rate cuts in both October and December, with probabilities of 95% and 83%, respectively, according to the CME FedWatch tool
Non-yielding gold thrives in a low-interest-rate environment and during economic uncertainties.
Fed Governor Stephen Miran said on Tuesday that the bond market's current relative calm as measured by long-term interest rates supports a push to lower interest rates aggressively.
Gold has climbed 52% so far this year on strong central bank buying, increased demand for gold-backed Exchange-Traded Fund (ETFs), a weaker dollar and growing interest from retail investors seeking a hedge amid rising trade and geopolitical tensions.
China's central bank added gold to its reserves in September for the 11th consecutive month, data from the People's Bank of China showed.
Goldman Sachs raised on Monday its December 2026 gold price forecast to $4,900 per ounce from $4,300, citing strong Western exchange-traded fund (ETF) inflows and likely central bank buying.
Elsewhere, spot silver XAG= edged 0.1% higher to $47.89 per ounce, platinum XPT= gained 1.2% to $1,637.95 and palladium XPD= climbed 0.8% to $1,348.08.
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