Gold prices soared to a new record high as US shutdown concerns deepened, fueling safe-haven demand among global investors. The prolonged political deadlock in Washington, coupled with growing expectations of interest rate cuts by the Federal Reserve, continued to support the metal’s upward momentum.
Spot gold rose 0.1 percent to $3,965.39 per ounce by 0308 GMT, after briefly touching an all-time high of $3,977.19 earlier in the day. Meanwhile, US gold futures for December delivery gained 0.3 percent to $3,988.10 per ounce.
Political deadlock boosts safe-haven demand
Analysts say the political impasse in the US Congress has intensified fears of a prolonged government shutdown, prompting investors to seek refuge in gold. The new record high as US shutdown uncertainty grows highlights gold’s role as a safe-haven asset during political and economic instability.
“The chances of rate cuts in October and December remain above 80 percent, and that is supporting gold prices,” said Kelvin Wong, senior market analyst at OANDA. “The government shutdown, with no resolution yet in sight, is another major driver.”
According to CME’s FedWatch tool, markets expect a 95 percent chance of a 25-basis-point rate cut in October and an 83 percent probability of another in December.
Gold’s strong rally continues
Gold has risen nearly 51 percent so far this year, driven by a combination of strong central bank buying, steady ETF inflows, and a weaker US dollar. Analysts believe the new record high as US shutdown pressures persist will further strengthen gold’s outlook.
Investment bank Goldman Sachs recently raised its December 2026 forecast for gold prices to $4,900 per ounce from $4,300, citing continued demand from both institutional and retail investors.
Among other precious metals, spot silver slipped 0.1 percent to $48.49 per ounce, platinum declined 0.4 percent to $1,619.62, while palladium edged up 0.1 percent to $1,325.71.
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