Oct 8 (Reuters) - Gold prices climbed to an all-time
high on Wednesday, nearing the crucial $4,000-per-ounce level,
bolstered by economic and geopolitical uncertainty and
expectations of additional interest rate cuts by the U.S.
Federal Reserve.
FUNDAMENTALS
* Spot gold was up 0.3% at $3,995.14 per ounce, as of
0044 GMT, after hitting a fresh high of $3,999.09 earlier in the
session.
* U.S. gold futures for December delivery gained
0.3% to $4,016.30.
* Americans grew more worried about the future of the job
market in September, while at the same time bumping up
projections for the future path of near-term inflation, a report
from the Fed Bank of New York said on Tuesday.
* The U.S. government shutdown entered its seventh day on
Tuesday, and has postponed the release of key economic
indicators, forcing investors to rely on secondary,
non-government data to gauge the timing and extent of Fed rate
cuts.
* Markets are pricing in additional 25-basis-point rate cuts
in both October and December, with probabilities of 95% and 83%,
respectively, according to the CME FedWatch tool
* Non-yielding gold thrives in a low-interest-rate
environment and during economic uncertainties.
* Fed Governor Stephen Miran said on Tuesday that the bond
market's current relative calm as measured by long-term interest
rates supports a push to lower interest rates aggressively.
* Gold has climbed 52% so far this year on strong central
bank buying, increased demand for gold-backed Exchange-Traded
Fund (ETFs), a weaker dollar and growing interest from retail
investors seeking a hedge amid rising trade and geopolitical
tensions.
* China's central bank added gold to its reserves in
September for the 11th consecutive month, data from the People's
Bank of China showed.
* Goldman Sachs raised on Monday its December 2026 gold
price forecast to $4,900 per ounce from $4,300, citing strong
Western exchange-traded fund (ETF) inflows and likely central
bank buying.
* Elsewhere, spot silver edged 0.1% higher to $47.89
per ounce, platinum gained 1.2% to $1,637.95 and
palladium climbed 0.8% to $1,348.08.
DATA/EVENTS (GMT)
0600 Germany Industrial Output MM August
0600 Germany Industrial Production YY SA August
(Reporting by Brijesh Patel in Bengaluru)
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