Viewpoint: Gold may have more pump space, as a potential U.S. government shutdown could lead to a large influx of funds.

On September 30, Pepperstone market strategist Ahmad Assiri stated that although gold prices have reached new highs supported by speculative flows and structural demand, the upside for gold prices seems fragile in the future. He noted that central banks remain active buyers, and institutional portfolios are increasingly raising their gold allocations above the traditional Benchmark of 5%. Given the macro environment, such as weakening indicators in the U.S. labor market, gold's position as a Hedging and diversification investment vehicles may remain solid. A potential U.S. government shutdown could also drive investors towards gold and U.S. Treasury bonds. Although short-term fatigue in gold may occur, any profit pullback will be quickly absorbed by demand. (Jin10)