Gold Soars Amid Wall Street Woes: U.S. Shutdown Effects Loom
The looming U.S. government shutdown impacts economic indicators, with Wall Street futures dipping and gold prices hitting a record high. The shutdown postpones crucial jobs data and furloughs thousands of workers, affecting markets while Asian stocks show mixed performance and oil prices remain steady.
Wall Street futures declined while gold reached record highs, as concerns mount over the U.S. government shutdown, which threatens to delay significant economic data releases. The shutdown's impact includes pausing the September jobs report and furloughing 750,000 federal employees at a daily loss of $400 million.
Gold continued its upward trajectory, reaching $3,875 an ounce, while the absence of non-farm payrolls data leaves investors relying heavily on the ADP National Employment Report. Analysts warn of potential shocks due to President Trump's threats to lay off workers permanently, which could compound the shutdown's economic impact.
Investor sentiment reflects growing expectations for Federal Reserve rate cuts, with chances of reductions in October and December. Global market responses vary, with European futures stable and Asian markets fluctuating, as concerns over inflation data quality persist if the shutdown prolongs.
(With inputs from agencies.)
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