Gold surged to a fresh record, briefly hitting $3,839.52 an ounce, as fears of a looming US government shutdown overshadowed the Federal Reserve’s monetary policy outlook ahead of next month’s interest-rate decision.
The rally followed a failed meeting between top congressional leaders and US President Donald Trump on short-term funding, raising concerns that a shutdown could delay key economic data needed to gauge the US economy.
Gold has climbed over 45% this year, driven by central bank demand and expectations of renewed Fed interest-rate cuts, and is set for a third consecutive quarterly gain. Holdings in bullion-backed exchange-traded funds have also reached their highest levels since 2022.
US Treasuries rose amid shutdown worries, supporting gold as lower yields benefit non-interest-bearing precious metals, while a weaker dollar makes dollar-denominated bullion cheaper for buyers.
Other precious metals showed mixed movements: silver and platinum paused after reaching multi-year highs, up roughly 62% and 76% year-to-date, respectively, due to persistent supply deficits. Spot gold remained near $3,837 an ounce, silver at $46.94, and platinum at $1,604.27, with palladium largely unchanged.
