The price of gold climbed to another record high today, approaching the $3,900 (approximately CZK 80,800) per troy ounce (31.1 grams) mark. It is being pushed up by fears of a possible shutdown of the US federal government if politicians there fail to agree on its further financing.
Morning surprise
Shortly after 8:00 a.m. CEST, the price of gold showed an increase of almost one percent and hovered around $3,870 per ounce, according to data on the Bloomberg website. On Monday, gold surpassed the $3,800 per ounce mark for the first time.
Since the beginning of September, the price of gold has risen by about 12 percent. It is thus on track for its biggest monthly increase in 14 years, Reuters reported. The prospect of further interest rate cuts in the United States is also contributing to the rise in gold prices.
Shutdown
According to Reuters, the latest negotiations between US President Donald Trump and his Democratic opponents on federal government funding have apparently not yielded any significant progress. Without an agreement, the so-called shutdown, i.e., the restriction of federal government operations, will begin on Wednesday.
“The threat of a shutdown is creating uncertainty in the market, which has accelerated the rise in gold prices,” said analyst Tim Waterer of KCM Trade. “The $4,000 level now looks like an achievable target for gold by the end of the year,” he added.
Source: Czech Press Office
