"In recent days, the global gold market has experienced heightened volatility driven by political and economic events in the United States, particularly the ongoing government shutdown, which has begun to erode investor confidence in the American economy visibly. Gold prices surged past $3,950 per ounce during early European trading on Wednesday, reflecting growing market anxiety and a renewed appetite for safe-haven assets amid escalating risks and uncertainty."
"The U.S. government shutdown, now entering its sixth week, is no longer a domestic political standoff-it has evolved into an international economic pressure point threatening market stability. Concerns are mounting over its impact on government spending, consumer confidence, and ultimately global growth. Historically, government shutdowns in Washington have been seen as opportunities for risk reassessment, but this time the extended duration and deep partisan divide over budget negotiations are pushing investors to adopt more defensive positions, led by hedging through gold."
Global gold prices have surged amid heightened volatility as the prolonged U.S. government shutdown erodes investor confidence and boosts demand for safe-haven assets. Prices climbed above $3,950 per ounce as markets increasingly price in the risk of a broader economic slowdown or financial disruption if the shutdown continues. The shutdown’s sixth week has raised concerns about government spending, consumer confidence, and global growth, prompting defensive positioning and hedging through gold. Persistent uncertainty and potential failure to pass temporary funding would likely sustain the trend. Countervailing pressures include a stronger U.S. dollar and higher real bond yields, which limit gold’s upside.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]