FX.co ★ Gold Eyes New Record

Gold edged closer to $3,870 per ounce on Wednesday, nearing the recent record highs, as concerns over a potential U.S. government shutdown increased the appeal of safe-haven assets. The U.S. Senate was unable to pass legislation to continue government funding, leading to fears of a potential shutdown, heightened by President Trump's indications of further reductions in the federal workforce. Market participants are keenly observing the possible duration of such a shutdown, as a prolonged one could delay crucial economic reports, notably the nonfarm payrolls data scheduled for release on Friday, just before the Federal Reserve's policy meeting at the end of October. On a related note, U.S. job openings experienced a slight increase in August, while the pace of hiring decelerated, suggesting a cooling of the labor market that might allow the Fed to consider lowering interest rates. Market sentiment currently reflects an almost certain expectation of a rate cut at the upcoming meeting, with approximately a 76% likelihood of an additional cut in December.