Investors Eye Fed Minutes as Gold Surges Amid Market Fluctuations

Major stock indexes edged higher on Wednesday as investors eagerly anticipated the minutes from the Federal Reserve's last meeting. This anticipation, coupled with a prolonged U.S. government shutdown, pushed gold's value past $4,000 an ounce, reinforcing its status as a go-to safe-haven asset. So far, gold has soared 54% this year, having already gained 27% in 2024. Spot gold's last trade was 1.41% higher at $4,039.81 an ounce, while U.S. gold futures for December were up 1.5% at $4,063.70.

Gold miners enjoyed a boost in their shares, with U.S.-listed Gold Fields climbing 3.8%. In currency markets, the Japanese yen fell to its weakest position since February against the dollar amid concerns of increased fiscal spending in Japan, compounded by the euro's dip due to political uncertainty in France. On Wall Street, stocks rebounded following Tuesday's downturn, spearheaded by gains in technology shares, including a 1.6% rise by Nvidia.

According to Oliver Pursche, senior vice president and advisor for Wealthspire Advisors, investors remain optimistic despite economic red flags, such as a government shutdown and slowing job market. As the wait for U.S. economic data continues amid the federal shutdown, attention turns to the Fed minutes release expected later today, with speculations of a potential rate cut of 25 basis points at the October meeting. Meanwhile, shares and yields adjusted globally, influenced by various political and economic developments, with U.S. oil prices also climbing.

(With inputs from agencies.)