Traders currently assign a 90% probability to a Federal Reserve interest rate cut in October, with about a 65% chance of another cut in December, which has pushed gold to its highest level in history.

This caused the US Dollar Index to fall for the second consecutive session, reducing the gains it recorded last week.

Meanwhile, global stock markets started this week cautiously as investors prepare for a possible US government shutdown. This has increased demand for safe-haven assets as markets brace for a potential government closure amid moderate bipartisan efforts to pass a funding bill.

Federal operations funding is set to expire at midnight on September 30, with no alternative funding or extension in Congress. Congressional leaders from both parties are scheduled to meet President Donald Trump on Monday for mediation talks.

A government shutdown could delay the release of the US government jobs report scheduled for next Friday and is expected to disrupt economic activity if left unresolved for a long period.

Gold found strong support at the start of this week’s trading due to several reasons, mainly fears of a US government shutdown, increased expectations of US interest rate cuts following recent inflation data, and the current weakness in US dollar levels.

The gold market in Egypt closed yesterday after recording the highest levels in the history of gold pricing, following an unprecedented jump in the global ounce above $3,830.

Recent data released by the United States at the end of last week showed that the decline in the US inflation rate gave markets reason to believe that further interest rate cuts by the Federal Reserve might be seen in the October and December meetings.

The overall trading trend is very positive for gold currently, and we may see several record levels registered this week. The gold market is in a good position now, so expectations of further increases in the coming period are growing.

Traders currently assign a 90% probability to a Federal Reserve interest rate cut in October, with about a 65% chance of another cut in December. This caused the US Dollar Index to fall for the second consecutive session, reducing the gains it recorded last week.