WASHINGTON, Oct 7: Gold prices looked poised to hit USD 4,000 an ounce or more by today, coming just USD 6 short of the target in a session that saw heightened support for the safe haven as a US government shutdown threatened to permanently wipe out thousands of federal jobs.
US gold futures for December delivery on New York’s Comex settled yesterday’s trading up USD 67.40, or 1.7 percent, at USD 3,976.30 per ounce. The intraday high was USD 3,993.95 – the closest to the USD 4,000 level that gold futures have gotten to since it came within the crosshairs of gold bulls over a few weeks ago.
The spot price of gold, which reflects trades in gold bullion, was, meanwhile, at USD 3,958.42, up USD 71.59, or 1.8 percent. The session high for spot gold was USD 3,970.03.
US President Donald Trump and his Republican cabinet members have been warning their Democratic rivals in Congress that, unless the federal government is reopened soon from the closure that began on October 1 over funding disagreements, thousands of federal employees could lose their jobs permanently.
“Betting websites forecast that the shutdown could last about 11 days,” Neils Christensen, editor on the website of bullion trader Kitco, wrote. “However, whether Congress passes legislation next week or it drags on beyond 35 days – which would break the record from President Trump’s first term (of shutdown) – the damage to America’s reputation on the world stage has already been done.”
While global central banks were the early movers of this year’s gold rally that added nearly 50 percent to futures and bullion prices from 2024’s closing of beneath USD 2,700 an ounce, the run-up has “moved into a new phase” with retail investors joining the party, Wall Street bank JPMorgan observed in a client note.
In the unlikely event that gold prices start reversing, the first line of support would be USD 3,900, followed by USD 3,850 and USD 3,800, charts show.
(UNI)
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