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Gold Prices Surge to Record Highs as Investors Seek Safe Haven

Gold prices hit record highs, driven by a weak dollar and investor demand for safe havens. Silver and other metals also rally, but the US government shutdown could impact economic data and Fed policy.

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1 min read
In this picture, we see the coin in gold and brown color. We see some text written as "The United...
In this picture, we see the coin in gold and brown color. We see some text written as "The United States Of America". It might be a money coin. In the background, it is brown in color and it looks like a carpet.

Gold Prices Surge to Record Highs as Investors Seek Safe Haven

Gold prices are surging this week, on track for a third consecutive quarterly gain. The precious metal has risen for six straight weeks, with a year-to-date increase of 45%. Meanwhile, silver has reached its highest level since 2011, and other metals like platinum and palladium have also rallied. However, uncertainty looms over the US government shutdown's potential impact on economic data releases.

Gold's recent surge has been driven by various factors. The US dollar has weakened, making gold more affordable for international buyers. Additionally, investors are seeking safe havens due to geopolitical tensions and economic uncertainties. The metal's rise has been steady, with a record high above US$3,800 an ounce reached this week, surpassing its previous peak set just last week.

Silver has also benefited from this trend, trading above US$46.7857 an ounce, its highest level since 2011. Other metals like platinum and palladium have also rallied strongly, boosted by market tightness and inflows into exchange-traded funds (ETFs).

The potential US government shutdown threatens the release of key economic data, including the monthly jobs report. This could impact the outlook for the Fed's cutting cycle, as officials have diverging views on monetary policy. Weaker employment figures could bolster the case for a rate cut by the US Federal Reserve.

Gold and silver prices continue to climb, reaching record highs and providing investors with a valuable hedge. Despite uncertainty surrounding the US government shutdown's impact on economic data, the precious metals market remains robust, driven by market tightness and investor demand. As the situation unfolds, investors will closely watch the potential implications for the Fed's monetary policy.

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