Gold Holds Near Record Level
Gold prices remained steady around $3,860 per ounce on Thursday, maintaining proximity to its all-time high. This stability is bolstered by anticipations of rate cuts from the Federal Reserve as well as a heightened demand for safe-haven assets. According to the ADP report, US private-sector employment experienced a decline in September, marking the first consecutive monthly contraction since 2020 and the most significant drop since March 2023. This development strengthens the expectation that the Federal Reserve will continue to reduce interest rates this year. Additionally, the Labor Department announced a delay in the September nonfarm payrolls report—an essential indicator for the Fed's late-October policy meeting—due to the government shutdown. US government operations have been partially halted by partisan gridlock, endangering thousands of federal jobs and increasing the appeal of safe-haven investments. However, some uncertainties have been lessened by the Supreme Court's decision regarding Fed Governor Lisa Cook, potentially alleviating concerns about the Federal Reserve’s independence and the likelihood of a dovish appointment.
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