Gold Futures Prices in New York Exceed $4000 for the First Time

Gold prices surged to $4,000 per ounce on Tuesday (October 7), signaling investors are flocking to alternative assets. With the current U.S. government shutdown and political crisis in France, spot gold prices surpassed $3,970 per ounce, while the most active December futures contract in the New York market exceeded $4,000 for the first time. The U.S. federal government shutdown has entered its second week, causing investors to lack crucial economic data and making it difficult for the Federal Reserve to assess the evolving situation, prompting the rise in gold prices. Traders are still evaluating expectations of a 25-basis point rate cut by the Fed in October, which is seen as a positive development for the safe-haven asset of gold.