Gold prices surged past US$3,900 per ounce on Monday morning, edging closer to the US$4,000 threshold, as investors turned to safe-haven assets amid the prolonged shutdown of the US federal government.
Bloomberg reported that global gold prices hit a record high, briefly touching US$3,920.63 per ounce before trimming gains. The continued government shutdown has delayed key economic data releases, including the non-farm payroll report originally scheduled for Friday, deepening uncertainty over the US economic outlook.
With limited official data available, investors have relied on private-sector reports to gauge the state of the economy. The Federal Reserve (Fed) faces increasing difficulty in deciding its next monetary policy moves, while markets still expect a 0.25% interest rate cut later this month—a move seen as positive for gold, which offers no yield.
Gold has gained nearly 50% so far this year, fuelled by economic and geopolitical uncertainty during President Donald Trump’s administration. The Fed’s rate-cutting cycle and central banks’ diversification away from the dollar through safe-haven purchases have also supported the rally.
“The overall picture remains unchanged—the Fed continues to lower rates amid a softening labour market,” said Ahmad Assiri, an analyst at Pepperstone Group. “However, the risk–reward dynamics are shifting, and any short-term pullback may be viewed as a buying opportunity in a continuing uptrend,” he added.
As of 8.45am Singapore time on October 6, spot gold rose 0.5% to US$3,905.54 per ounce, marking its seventh consecutive weekly gain. The Bloomberg Dollar Spot Index climbed 0.3%, while silver, platinum, and palladium also advanced.