Gold clinched a fresh record — pushing closer to $4,000 an ounce — as the US government shutdown added another layer of uncertainty over the Federal Reserve’s interest-rate path before a gathering of policymakers later this month.
Bullion rose as much as 0.4% as markets opened on Tuesday to $3,976.25 an ounce, after gaining 1.9% on Monday. The suspension in federal operations — which began last week — has deprived investors of key government data needed to assess the health of the US economy, while the US central bank struggles to assess changing conditions. Traders are still pricing in a quarter-point rate cut this month, which would benefit gold further as it doesn’t pay interest.