risis Continues, Gold Futures Rise to $4,000 Milestone

On October 6, Eastern Time, the US Senate voted on a funding bill proposed by Democrats aimed at ending the government shutdown. The bill ultimately failed to pass with 45 votes in favor and 50 against.

Subsequently, the Senate voted on a temporary funding bill proposed by Republicans. The voting results still fell short of the threshold for passage, and the bill was not approved. With the bills rejected, the US government shutdown will continue.

Following this, Kevin Hassett, Director of the White House National Economic Council, stated that the government shutdown is reducing US economic output by approximately $15 billion per week. If it persists for one month, it could lead to an additional 43,000 unemployed and reduce consumer spending by $30 billion.

Additionally, later on October 6, New York gold futures historically touched the $4,000 per ounce milestone for the first time, surging over 50% year-to-date. Spot gold reached $3,976.94 per ounce, also setting a new all-time high.

It is worth noting that the non-farm payroll data originally scheduled for release on October 3 has also been postponed due to the government shutdown. This data serves as a critical reference for the Federal Reserve's interest rate adjustments. The lack of key reference information may make it more difficult for the Fed to assess economic fundamentals, strengthening the possibility of an interest rate cut at the end of this month.

Lower interest rates reduce the opportunity cost of holding gold, further enhancing its appeal to investors.

Kathleen Brooks, Research Director at EU financial broker XTB, pointed out that although the stock market has fully priced in the negative expectations of the government shutdown, the surge in gold prices still reflects market concerns.