Gold Retreats from Its Record Throne as Dollar Rises and Profit-Taking Occurs
Gold prices fell slightly during trading on Thursday, retreating from the record high reached in the previous session, as profit-taking and a slight rise in the dollar pushed the yellow metal down.
Gold futures recorded a decline of about 0.2% to settle at $3889.8 per ounce, while the spot price fell by less than 0.1% to $3862.78 per ounce. In contrast, the U.S. dollar index remained stable at 97.731 points.
This decline comes amid a U.S. political landscape shrouded in uncertainty following the government shutdown, which has suspended most federal government activities and threatened thousands of jobs. Congress and the White House have failed to reach a funding agreement due to partisan divisions between Republicans and Democrats.
This shutdown is expected to delay the release of several important economic reports, most notably the non-farm payroll report that the market is eagerly awaiting, which was scheduled to be released on Friday. Recent data also showed a decline in U.S. private sector jobs by 32,000 in September, following a revision of August data that showed a decrease of three thousand jobs.
In the backdrop of these developments, investors are turning their attention to the Federal Reserve, where expectations point to a potential interest rate cut. According to the CME FedWatch Tool, traders are anticipating a 25 basis point cut to the key interest rate this month, which could provide support for gold prices considered a safe haven in times of uncertainty.
