WASHINGTON (dpa-AFX) - Gold hit a new record high on Monday, reflecting demand for safe-haven assets amid U.S. shutdown worries, trade war concerns, and fiscal and political uncertainty in countries like France and Japan.
Spot gold was up 1.3 percent at $4,071.22 an ounce after hitting a new record high of $4,079.81 earlier. U.S. gold futures were up 2.3 percent at $4,090.32.
The U.S. dollar steadied near 99.00 as U.S. President Donald Trump posted conciliatory message about China tariffs on Truth Social after threatening 100 percent tariff.
Trump said that he thinks the U.S. relationship with China will be 'fine' and the U.S. wants to help China, not hurt it.
Meanwhile, Trump has started firing thousands of federal workers while assuring the military will be paid during the shutdown, which has now entered its third week.
Congress remains deadlocked on a funding plan and the Senate isn't scheduled to hold any votes until Tuesday.
Oct. 15 is the next pay date for most federal workers, and possibly the first that many employees will miss.
With most major U.S. economic data indefinitely postponed due to the shutdown, this week's trading may be impacted by reaction to remarks by several Federal Reserve officials, including Fed Chair Jerome Powell on October 14.
The Bureau of Labor Statistics has revealed the report on consumer price inflation that had been due to be released next Wednesday will now be released on Friday, October 24th.
Federal Reserve Governor Christopher Waller said on Friday that private employment data continues to show labor market weakness, and he wants to move towards cutting rates with caution.
St. Louis Fed President Alberto Musalem said that another rate cut could be warranted as insurance against a weakening labor market.
Markets currently price in nearly a 97 percent chance that the Federal Reserve (Fed) cuts rates by 25 basis points (bps) at its October meeting.
The possibility of an additional reduction in December is at 92 percent, according to the CME FedWatch tool.
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