Gold Hits Record High Amid US Shutdown Fears and Weak Labor Data

Gold prices surged to a record high on Wednesday, as investors sought safe-haven assets amid rising concerns over a potential US government shutdown and disappointing US labor market data.

Spot gold rose 0.4% to $3,872.87 per ounce by 0206 GMT, while US gold futures for December delivery gained 0.7% to $3,901.40.

The dollar index hovered near a one-week low, making dollar-denominated gold more affordable for overseas buyers.

“Gold is benefiting from concerns over a weaker dollar, the political situation with the standoff about a government shutdown in the US, and general geopolitical uncertainty,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.