Gold retreated 1.5% after touching $4,400 an ounce, as investors took profits from its record-breaking rally. The metal remains the best-performing asset of the past two decades and now accounts for 30% of global central bank reserves, compared with 40% for the U.S. dollar and less than 20% for the euro. Analysts note that if gold rises another **30%—to around $5,800—**it would surpass the dollar as the world’s largest reserve asset.
Global equities extended gains, with all major U.S. indexes up about 1%, hovering just below record highs as the earnings season gathers pace. IBES projects 9.1% EPS growth this quarter, or 10% excluding energy.
The dollar index (DXY) was little changed, while the 10-year Treasury yield eased to 3.98%. The U.S. government shutdown entered its 20th day, leaving investors facing next week’s FOMC meeting with limited data visibility.
Across Asia, markets closed 0.7% higher on average, while European stocks and U.S. futures were broadly steady.