08.10.202518:11:09UTC+00Gold Rises to Record of $4,050

Gold soared to a new high, surpassing $4,050 per ounce on Wednesday, amid continued economic uncertainty and a dovish stance from the Federal Reserve prompting investors to shift from the dollar to precious metals. The stalemate in the U.S. Congress is prolonging the government shutdown into its second week, threatening the potential for significant layoffs among public sector employees. This shutdown has also stalled the release of economic data, amplifying the influence of discouraging private sector reports, such as consecutive contractions in ADP payroll figures and negative job indices within ISM PMI surveys. Consequently, the minutes from the Federal Open Market Committee's (FOMC) most recent meeting indicated that policymakers are inclined to further reduce interest rates due to vulnerabilities in the labor market. Additionally, concerns about persistent inflation, highlighted by the FOMC, are pushing a stronger move away from dollar-denominated assets. In light of the growing interest in gold, China is capitalizing on the skepticism surrounding dollar assets by offering custodian services for foreign investors.