Gold Hits Two-Week High as Economic Jitters and Weaker Dollar Lift Safe-Haven Demand

Gold surged over 1% to around $4,070 per ounce on Monday, marking a two-week high as mounting concerns about the U.S. economy boosted demand for safe-haven assets.

The metal also gained support from a weaker U.S. dollar, which made dollar-priced commodities more attractive to foreign investors.

Adding to market unease, the University of Michigan’s consumer sentiment index fell to its lowest level in nearly three and a half years on Friday, as the historic government shutdown dragged into its longest stretch ever.

However, there were signs of progress in Washington, with the U.S. Senate reportedly nearing a deal to reopen the government, backed by several Democratic senators.

Meanwhile, investors remain divided over the Federal Reserve’s next policy move, with markets pricing in about a 67% chance of a 25-basis-point rate cut in December, unchanged from last week.