Gold prices climbed above $3,900 per ounce for the first time on Monday as investors sought safety after the yen weakened and the U.S. government remained shut down. Spot gold rose 0.9 percent to $3,922.28 per ounce by 0208 GMT after reaching a record high of $3,924.39 earlier in the session. U.S. gold futures for December delivery increased 1 percent to $3,947.30.
The yen dropped sharply against the dollar following Sanae Takaichi's election as the ruling party leader and the next prime minister. Investors turned to gold as an alternative safe haven while uncertainty persisted over the economic impact of the government shutdown. Federal Reserve rate cut expectations provided additional support for prices.
Gold has surged 49 percent this year after gaining 27 percent in 2024. Central bank purchases and demand from exchange-traded funds have driven the rally. Markets expect the Fed to cut rates by 25 basis points in both October and December, with probabilities of 95 percent and 83 percent, respectively.
The yen dropped sharply against the dollar following Sanae Takaichi's election as the ruling party leader and the next prime minister. Investors turned to gold as an alternative safe haven while uncertainty persisted over the economic impact of the government shutdown. Federal Reserve rate cut expectations provided additional support for prices.
Gold has surged 49 percent this year after gaining 27 percent in 2024. Central bank purchases and demand from exchange-traded funds have driven the rally. Markets expect the Fed to cut rates by 25 basis points in both October and December, with probabilities of 95 percent and 83 percent, respectively.
