Gold futures surged 2% to near $1,760, speculative buying drives the market.
Gold futures were up 2% near $1,760 today. from the speculative buying power of investors After falling for 2 consecutive days
In addition, the price of gold was also supported by the weakening of the dollar. which will increase the attractiveness of gold by making gold contracts cheaper for holders of other currencies
Gold contract on COMEX (Commodity Exchange) for delivery in Dec. It rebounded $34.50, or 2.0%, to $1,757.40 an ounce.
However, gold prices are still under pressure as the US Federal Reserve (Fed) may cut funding in its quantitative easing (QE) bond-buying program and raise interest rates faster than expected.
Investors are eyeing the congressional vote on the shutdown avoidance law today.
Republican Senate Minority Leader Mitch McConnell predicted the Senate would approve the interim budget bill. To support US federal agencies to budget until Dec. 3 and avoid the closure of these agencies.
McConnell’s remarks signaled that Republicans would cooperate with Democrats in pushing for the bill in today’s resolution.
Mr McConnell’s statement was consistent with the remarks from Democratic Senate Majority Leader Chuck Schumer. which declares that Senators have reached an agreement for the passage of the bill.
“We were able to quickly approve the bill. and send it to the House of Representatives to reach the President’s table before the end of the fiscal year at midnight tonight,” Schumer said.
The bill needs the support of all 100 senators.
However, this bill does not include raising the US debt ceiling. The Democrats and Republicans will have discussions after this.
US Treasury Secretary Janet Yellen warned that Congress has less than three weeks to consider extending the debt ceiling. and avoid the disaster that will happen to the country’s economy
“What we estimate right now is that The money in the Treasury’s special measures will be exhausted if Congress does not raise the debt ceiling or suspend the debt ceiling by Oct. 18, at which time. We expect the Treasury to have very limited resources and will run out quickly,” Yellen said.
Ms Yellen also stated that If Congress fails to raise the debt ceiling This will result in the US facing default for the first time in its history. and will have a severe impact on the country’s economy