The price of gold hit a new record high after the first US government shutdown since 2018

Gold prices have continued their record-breaking rally this week as political and economic uncertainty drive investors toward safe-haven assets.

The US government entered its first shutdown in seven years after Congress failed to pass a funding bill, leaving non-essential departments closed and employees on unpaid leave. The disruption has delayed the release of key economic data, including the monthly jobs report, and raises fresh concerns over the stability of U.S. policymaking.

Markets expect the Federal Reserve (Fed) to continue cutting interest rates in 2025 following September’s initial reduction.. A weaker dollar, geopolitical tensions in the Middle East and Ukraine, and renewed questions over the Fed’s independence under President Trump have all reinforced global investor demand for gold..

Gold has now gained nearly 50% this year, with prices approaching $4,000 per ounce. Silver has mirrored the rally, rising over 60% on both safe-haven demand and strong industrial use (particularly as the US considers designating it a critical mineral)

Photo by Anne Nygård on Unsplash