On Monday morning, gold prices surged past US$3,900 per ounce, nearing the US$4,000 mark, driven by increased demand for safe-haven assets amid the ongoing US federal government shutdown. Bloomberg reported that global gold prices briefly peaked at US$3,920.63 before easing slightly. The shutdown has caused delays in releasing key economic data, including the non-farm payroll report scheduled for Friday, increasing uncertainty about the US economy.
With official data scarce, investors are turning to private-sector reports to gauge economic health. The Federal Reserve faces challenges in next policy steps, with markets still expecting a 0.25% interest rate cut later this month—a move beneficial to gold, which does not yield interest.
Gold has gained nearly 50% this year, buoyed by geopolitical and economic instability during President Donald Trump’s tenure. Supporting factors include the Fed’s rate-cutting cycle and central banks diversifying away from the dollar through gold purchases.
“Despite the ongoing rate cuts amid a weakening labor market, the overall outlook remains the same,” said Ahmad Assiri, an analyst at Pepperstone Group. “However, the risk–reward ratio is shifting, and any short-term dips could present buying opportunities in a sustained upward trend.”
As of 8:45 AM Singapore time on October 6, spot gold increased 0.5% to US$3,905.54 per ounce, marking its seventh consecutive weekly rise. The Bloomberg Dollar Spot Index also rose 0.3%, while silver, platinum, and palladium prices advanced.