The price of gold reached a new record level on Wednesday, after an orderly shutdown of Government activities began in the United States, which will also cause the postponement of some essential economic reports.
Gold reached $3,875.53 per ounce, the fifth day of increase in the price of the yellow metal, after the U.S. Senate failed on Tuesday in a last attempt to avoid the shutdown of a part of its federal services, and the White House requested agencies to „execute plans for a orderly shutdown,” the first such event in the last seven years, Bloomberg reports.
A suspension of federal operations risks putting new pressures on the dollar, while the publication of essential reports evaluating the U.S. economy, including unemployment data scheduled for Friday, could be delayed.
The price of gold has increased by over 47% this year, on track for the most significant annual gain since 1979.
The rally is supported by strong demand from central banks, the potential weakness of the U.S. dollar, and the resumption of interest rate cuts by the U.S. Federal Reserve (Fed).
In addition, analysts believe that the uncertainty caused by changes in the composition of the Fed's monetary policy committee as well as the ongoing challenges to the Fed's independence are favorable for the rise in gold prices.