Overview

• Spot gold touched about $3,970 per ounce on Oct. 6 before easing to roughly $3,962, a gain of nearly 2% on the day.
• The latest leg higher is tied to the U.S. budget crisis and partial government shutdown, with postponed economic data such as the jobs report heightening uncertainty.
• Underlying support includes years of reserve accumulation by central banks, notably in China and India, plus geopolitical risks, protectionist U.S. trade policy and President Donald Trump’s attacks on Fed independence.
• Momentum remained strong into early October with three straight record sessions and roughly a $130 advance over five trading days.
• Year to date, gold is up around 50% in dollar terms, the strongest rise since 1979, while in Europe it traded near €3,406 per ounce on Oct. 7 with a slight intraday dip of about 0.06%.