U.S. gold futures surged past the $4,000 per ounce milestone for the first time on Tuesday, driven by expectations of a Federal Reserve rate cut later this month and persistent safe-haven demand due to the ongoing U.S. government shutdown. U.S. gold futures for December delivery settled 0.7% higher at $4,004.4, after hitting a high of $4,014.6. "It's ongoing safe-haven flows stemming in part from the government shutdown and no real indication that is likely to be resolved in the immediate term here. So there's still a pretty decent bid in gold," said Peter Grant, vice president and senior metals strategist at Zaner Metals. Non-yielding gold, which tends to do well during times of uncertainty and low interest-rate environments, has climbed 51% so far this year. The metal's rally has been driven by a cocktail of factors, including expectations of interest rate cuts, ongoing political and economic uncertainty, solid central bank buying, inflows into gold ETFs and a weak dollar.
Source: Reuters
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