FX.co ★ Gold Climbs to Two-Week High

Gold prices surged by over 1% to approximately $4,050 per ounce on Monday, reaching a two-week peak amid escalating concerns regarding the U.S. economy. This precious metal was also buoyed by a weakening dollar, which makes dollar-denominated commodities more accessible to foreign purchasers. Recently, the University of Michigan's consumer sentiment index hit its lowest point in nearly three and a half years, as the U.S. government shutdown prolonged to its longest duration in history. However, the U.S. Senate seemed poised to approve a deal to end the closure, with sufficient Democratic senators reportedly in support of the proposal. In terms of monetary policy, the market remains uncertain about the likelihood of the U.S. Federal Reserve cutting interest rates in December. Current market data suggests a 67% probability of a quarter-point rate cut, which remains unchanged from the previous Friday.