FX.co ★ Gold Holds Near Record High

Gold prices hovered around $4,340 per ounce on Tuesday, sustaining proximity to the recent record highs set in the previous session. The precious metal continues to be buoyed by its safe-haven status and the anticipation of US interest rate reductions. The prevailing US government shutdown remains a source of economic uncertainty, although White House economic adviser Kevin Hassett has indicated the potential resolution of the deadlock this week.

Market participants are also scrutinizing developments in US-China trade relations as Treasury Secretary Scott Bessent is scheduled to engage in discussions with Chinese Vice Premier He Lifeng in Malaysia this week. This meeting is a precursor to the anticipated dialogue between President Donald Trump and President Xi Jinping. Concurrently, financial markets have already factored in a 25 basis points interest rate cut by the Federal Reserve expected later this month, with another reduction likely in December.

Investor attention is now focused on the September Consumer Price Index (CPI) report, due for release on Friday, which was postponed due to the shutdown. This report is expected to provide further insights into economic conditions.