The post Gold trades below record highs as US shutdown drags on; ISM Services PMI softens appeared on BitcoinEthereumNews.com.

Gold (XAU/USD) gains ground above $3,850 on Friday, trading around $3,875 during the American session, up nearly 0.50% on the day. The metal has recovered from an intraday low near $3,838, finding fresh bids as the US Dollar (USD) eases following Thursday’s modest rebound. The broader outlook for Gold remains tilted to the upside, while pullbacks are likely to attract dip-buying interest, supported by safe-haven demand as the United States (US) government shutdown drags into a third day. Moreover, growing expectations that the Federal Reserve (Fed) will cut interest rates later this month provide an additional tailwind for the metal. Looking ahead, with the September Nonfarm Payrolls (NFP) report delayed due to the political gridlock in Washington, market attention turned to the US ISM Services Purchasing Managers Index (PMI), which underscored signs of cooling momentum. The headline index slipped to 50.0 in September, missing expectations of 51.7 and down from 52.0 in August. Market movers: US government shutdown weighs on growth outlook and Fed path The ISM’s report showed the New Orders Index plunged to 50.4 from 56.0, while the Employment Index remained in contraction at 47.2, marking the fourth straight month of job weakness despite a slight uptick from 46.5. In contrast, the S&P Global Services PMI eased only slightly to 54.2 in September from 54.5, and the Composite PMI edged down to 53.9 from 54.6, both still pointing to moderate expansion. Speaking on CNBC’s Squawk Box on Thursday, US Treasury Secretary Scott Bessent urged Congress to pass a “clean continuing resolution” to fund the government and cautioned that “shutting down the government and lowering the GDP… could see a hit to the GDP, a hit to growth and a hit to working America.” According to a White House memo cited by Politico, the US economy risks losing about…

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Filed under: News - @ October 4, 2025 10:25 am