Gold Hits Record High, heads for the best month in 14 years on Safe-Haven Rush

The golden prizes continued to hit a fresh high Tuesday and were ready for their best month in 14 years, because the fear of a potential closure of the US government and the growing expectations of further American interest rates increased the demand for the safe haven metal.

Fundamentals
* Spot gold rose by 0.2% to $ 3,842.76 per ounce, from 0123 GMT. Bullion has risen 11.4% so far in September, on schedule for its best month since August 2011.

* US Gold Futures for the December delivery achieved 0.4% to $ 3,872.
* US President Donald Trump and his democratic opponents seemed to make little progress during a meeting of the White House aimed at concluding a government closure that could disrupt a wide range of services as soon as Wednesday.
* Recent economic data has lifted expectations for further reductions of the Federal Reserve this year, with traders who are in a chance of about 89% of a 25-based point reduction during the next FED meeting, according to the Fedwatch tool of CME Group.
* St. Louis Federal Reserve President Alberto Musalem said he was open to further cutbacks, but the Fed must be careful and keep the rates high enough to keep leaning against inflation.
* Gold, often used as a safe storage of value in times of political and financial uncertainty, thrives in an environment with low interest rates.
* Investors are now waiting for American information about vacancies, private payrolls, the ISM Manufacturing PMI and the non-agricultural payroll on Friday for further instructions on the health of the economy.

* The American labor department confirmed on Monday that its statistics agency would suspend the releases of the economic data, including the closely monthly employment report for September, in the case of a partial government closure.
* SPDR Gold Trust, the world’s largest stock market -built fund, said that his interests rose by 0.60% to 1,011.73 tons on Monday from 1,005.72 tons on Friday.