Gold climbs to record on weaker dollar, government shutdown fears

Gold prices surged to a record high of $3,814.95 per ounce, driven by a weakening dollar and concerns about a potential U.S. government shutdown, resulting in greater economic uncertainty.

The increase in gold prices marked the seventh consecutive week of gains, with silver reaching its highest level since 2011, indicating a broader trend in precious metals benefiting from tightening market conditions.

The dollar index weakened as investors anticipated a meeting between Congressional leaders and President Trump, with concerns about a potential delay in employment data affecting the Federal Reserve's monetary policy decisions.

Investors interested in gold and gold mining can explore various ETFs, such as GLD, IAU, and GDX, as opportunities for investment in the rising precious metals market.

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Gold Prices Hit Record High Amid Economic Uncertainty

On Monday, gold prices (XAUUSD:CUR) soared to an unprecedented level, breaking the $3,800 mark to reach $3,814.95 per ounce. This surge was primarily driven by the declining value of the dollar and the rising concerns surrounding a potential U.S. government shutdown, which could postpone critical employment reports and obscure the Federal Reserve's monetary policy direction.

The yellow metal experienced a notable increase of 1.2%, exceeding last Tuesday's previous record and marking its seventh consecutive week of gains. Similarly, silver (XAGUSD:CUR) reached its highest point since 2011, climbing by 1.7% to settle at $46.88 per ounce. Other precious metals, including platinum and palladium (XPDUSD:CUR), also saw gains due to tightening market conditions and significant inflows into exchange-traded funds (ETFs) backed by these metals.

The dollar index (DXY) weakened during this period as investors paid close attention to an impending meeting between Congressional leaders and President Donald Trump. The threat of a government shutdown adds to the potential for a delay in critical jobs data, which, if soft, could bolster the Federal Reserve's argument for interest rate cuts in October. However, uncertainty surrounding economic indicators and concerns about the central bank's independence continue to linger.

For those interested in investing in gold and gold mining, consider these ETFs: (NYSEARCA:GLD), (IAU), (SGOL), (OUNZ), (BAR), (GDX), (GDXJ), (NUGT), (RING), and (DUST).