GOLD soared to an all-time high on Wednesday, propelled by mounting investor anxiety over a potential United States government shutdown and a weakening labour market that has reinforced expectations of imminent interest rate cuts by the Federal Reserve.
Reuters reported today that Spot gold climbed 0.4 per cent to US$3,872.87 an ounce by 0206 GMT, while US gold futures for December delivery advanced 0.7 per cent to US$3,901.40, according to Reuters.
The dollar index hovered near a one-week low, making gold more attractive to foreign buyers.
“Gold is benefiting from concerns over a weaker dollar, and the political situation with the standoff about a government shutdown in the US and also general geopolitical uncertainty,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
On Tuesday, the US Senate failed to pass legislation to extend federal funding, edging the country closer to a shutdown. President Donald Trump further fuelled uncertainty by warning of potential federal workforce cuts. A shutdown could delay crucial economic data releases, including the widely watched non-farm payrolls report due Friday.
Adding to the economic gloom, the latest Job Openings and Labor Turnover Survey (JOLTS) pointed to stagnating job openings in August and a dip in hiring, suggesting a cooling labour market.
Traders are now pricing in a 97 per cent probability of a 25-basis-point Fed rate cut this month, and a 76 per cent chance of another in December, according to CME Group’s FedWatch tool.
“It is difficult to see an immediate end and we are projecting further strength in the near term,” said Michael Hsueh, precious metals analyst at Deutsche Bank, in reference to gold’s ongoing rally.
Gold, traditionally a hedge against economic and political instability, is particularly favoured in low-interest-rate environments due to its non-yielding nature. It has risen more than 47 per cent so far this year.
Silver also shone, surging 1.5 per cent to US$47.39 per ounce — a level not seen in over 14 years. Platinum rose 1.4 per cent to US$1,595.85, and palladium edged up 0.9 per cent to US$1,267.75. - October 1, 2025
Gold Prices, US Government Shutdown, Federal Reserve, Interest Rates, Labour Market, Precious Metals, US Politics, Safe-Haven Assets, Silver, Inflation Hedge
