The economist attributed the rise in gold to $4,051 to political instability in the United States

The rise in gold prices to $4,051 per troy ounce is due to political instability in the United States. This was announced on October 8 by Alexander Schneiderman, Head of Alfa-Forex's Customer Support and Sales Department.

"The main event of the past week was the shutdown, which dragged on at the top of the American authorities. According to some estimates, the government shutdown costs the American economy $400 million in losses per day," the economist said.

He also added that expectations of further easing of US monetary policy are contributing to the rise in gold prices. If the Federal Reserve System (FRS) reduces the discount rate to 3.75-4.00%, it will make dollar assets less attractive. As a result, central banks can reduce the dollar's share in their gold and foreign exchange reserves and increase gold reserves, Schneiderman said.

"The situation of uncertainty and suspense causes nervousness in the financial market, which almost always results in increased demand for protective assets. The main one is gold. The situation also coincided with increased demand for gold as a raw material for manufacturing high-tech equipment, including for data centers," the expert said.

Nevertheless, he noted that the resolution of the shutdown, which will eventually occur, may lead to a decrease in quotations. However, two other factors — the discount rate in the United States and industrial demand for gold — are of a long-term nature and will continue to influence the market.

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On the same day, it was reported that the price of gold futures updated its historical maximum, exceeding the mark of $ 3,985 per troy ounce. The increase was 0.36%. Also, according to information at 08:05 Moscow time, the price stopped growing at $4,051 per troy ounce.

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