Gold Forecast: XAU/USD, at fresh highs near $3,900 on risk-off markets

LONDON (October 1) Risk-averse markets, following the closure of the US federal government, are boosting demand for precious metals on Wednesday. Gold (XAU/USD) bounced from lows right below $3,800 and has reached fresh all-time highs, above $3,890, during the European trading session.

Bullion has been drawing support from the vulnerable US Dollar as the closure of the US federal government and uninspiring US Data –Tuesday’s rise on Job openings was offset by a lower hiring rate– has underpinned hopes of further Fed rate cuts this year.

FXStreet