December gold futures on the Comex exchange briefly exceeded the psychologically important $4,000 an ounce during trading on Tuesday amid political crises in the United States and France.
By 13:00 Bulgarian time, futures had risen by about 0.2%, trading at $3,983.3 an ounce. They had previously reached $4,000.1 an ounce.
US senators again failed to pass a bill that would allow the restoration of government funding and an end to the market closure, according to US media reports. Fifty-two members of the Senate voted in favor of the bill, with the minimum required 60 votes.
Demand for gold, already high due to increased uncertainty in the global economy, usually increases during political crises, as the precious metal is considered a safe-haven asset.
Gold is also supported by expectations of further interest rate cuts by the Federal Reserve. This weakens the US dollar and increases the attractiveness of gold for holders of other currencies.
“I believe gold could rise to $4,300 an ounce in the next 6 months on the back of a weaker dollar“, said Michael Langford, chief investment officer at Scorpion Minerals.