Gold Hits Record High Amid U.S. Government Shutdown and Geopolitical Tensions

Istanbul, Oct 1(VoM): Gold prices surged to an all-time high of $3,895.33 per ounce on Wednesday morning (0830 GMT), driven by the U.S. government shutdown and escalating global uncertainties.

The precious metal has climbed 45.9% over the past year, fluctuating between $2,536.91 and $3,819.80, and is now setting new records as investors seek safe-haven assets.

The U.S. government entered a shutdown after negotiations between President Donald Trump and congressional Democrats collapsed, halting approval of a new federal budget.

While a shutdown does not automatically trigger an economic crisis, it disrupts wide areas of American life. Many federal employees are being furloughed or working without pay, while nonessential staff face mandatory leave. Federal agencies are operating under emergency plans, designating only essential workers to remain on duty.

The shutdown also means that key economic indicators, including non-farm payrolls, jobless claims, and inflation data may be delayed. The Bureau of Labor Statistics confirmed that it will not release economic figures during the shutdown.

Beyond the political stalemate, analysts say gold’s rise is also fueled by geopolitical risks, global economic concerns, strong central bank demand, and expectations that the U.S. Federal Reserve will continue its rate-cut cycle.

Last week, under pressure from President Trump, the Fed lowered its benchmark interest rate by 25 basis points. Markets are now widely expecting further rate cuts in the Fed’s upcoming October and December meetings.

Weak inflation, rising unemployment figures, and concerns over global stability are adding momentum to gold’s upward rally.

With both political uncertainty and economic risks mounting, gold continues to assert itself as a key safe-haven asset for investors worldwide.