Gold Prices Surge to Record Amid U.S. Government Shutdown

Articles , English , International - بین الاقوامی , Snippets , / Wednesday, October 1st, 2025

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Sources Anadolu Agency
The price of gold soared to a historic high on Wednesday, reaching $3,895.33 per ounce as of 0830GMT, following the U.S. government shutdown after President Donald Trump and congressional Democrats failed to reach an agreement on funding. Over the past 12 months, gold prices have ranged between $2,536.91 and $3,819.80, gaining nearly 46 percent during the period.
While a government shutdown does not automatically trigger a full-scale economic crisis, it disrupts many aspects of American life. Federal employees may be furloughed, placed on unpaid leave, or required to work under emergency plans until a new budget is approved. Agencies implement shutdown measures independently, determining which staff are essential. Key economic data, including non-farm payrolls, jobless claims, and inflation figures, may also be delayed as the Bureau of Labor Statistics suspends regular reporting during the shutdown.
Despite these domestic disruptions, gold continued its upward momentum, supported by geopolitical tensions, global economic concerns, and sustained central bank demand. Investors also reacted to the Federal Reserve’s recent decision, prompted by President Trump, to cut its policy rate by 25 basis points last week. Markets anticipate further rate reductions in upcoming October and December meetings amid weak inflation data and rising unemployment figures.
Analysts note that the combination of U.S. political uncertainty, global economic risks, and central bank monetary policy is driving investors toward safe-haven assets, with gold emerging as a preferred hedge. The precious metal’s record surge reflects both immediate market reactions to the shutdown and broader concerns about financial stability and economic growth.