Gold Prices Surge in USA as Government Shutdown Fuels Rate-Cut Expectations -

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Gold prices in the USA have surged near record levels amid increasing uncertainty caused by the US government shutdown. Investors are seeking safe assets, with gold benefiting significantly from this demand. Experts now expect the Federal Reserve to cut interest rates further, which typically supports higher gold prices.

Currently, spot gold is trading close to its all-time highs. In addition, physical demand for gold is rising strongly in India, one of the world’s largest consumers of the precious metal. Alongside gold, other precious metals such as silver, platinum, and palladium are also experiencing price increases.

Factors Contributing to Rising Precious Metal Prices

Economic uncertainty: The US government shutdown has created an unstable environment.
Interest rate expectations: Anticipation of Federal Reserve rate cuts encourages investment in precious metals.
Geopolitical issues: Global tensions boost demand for safe-haven assets.
Increased physical demand: Notably from major consumers like India.

The combination of geopolitical concerns and expectations of easier monetary policy is driving investors towards precious metals as a reliable store of value. This trend is not just limited to gold but extends to silver, platinum, and palladium, making these metals increasingly attractive in today’s environment of low interest rates and economic uncertainty.