Gold Hits Record Above $3900 as US Shutdown Continues

2025-10-06 01:19 By Judith Sib-at 1 min. read

Gold prices surged past $3,950 per ounce to a record high on Monday, driven by investors seeking the safe-haven asset amid growing worries over a prolonged US government shutdown.

The shutdown was extended into this week after the Senate on Friday failed to advance competing plans to extend federal funding.

This has delayed key economic releases, including September’s non-farm payrolls report, leaving investors to rely on alternative indicators that signal a weakening labor market and reinforce expectations of an imminent rate cut.

Markets are now pricing in about a 95% probability of a 25bps cut in October and an 84% chance of a similar move in December.

Even without fresh data, traders will closely monitor remarks from Federal Reserve officials this week for clues on the US central bank’s rate-cut path.

So far this year, bullion has surged almost 50%, spurred by heightened economic and geopolitical uncertainty, expectations of further rate cuts, central bank buying, and ETF inflows.



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