Gold prices in the U.S. surged to new highs as a government shutdown shook investor confidence. Spot gold reached a record of $3,894 per ounce, while U.S. futures touched $3,922 before slightly pulling back. Investors rushed to gold, viewing it as a haven amid economic and political uncertainty.
The shutdown delayed critical jobs data, adding pressure on the Federal Reserve. The lack of funding clarity left markets uncertain about future economic trends. Investors responded by seeking stability, and gold gained from increased demand. Analysts emphasize that this U.S. gold rally reflects broader market nervousness, not just short-term factors.
Michael Field, chief equity strategist, said ongoing conflicts and political instability are fueling the gold surge. Investors reacted to tariffs and global uncertainty, boosting gold’s appeal. Field added that the government shutdown acted as a catalyst, accelerating the metal’s climb. Consequently, gold became a preferred asset for risk-averse investors seeking protection.
Philippe Gijsels from BNP Paribas Fortis expects gold to exceed $4,000. He highlighted that central bank buying and growing investor interest are driving the rise. The metal’s momentum gained strength as investors diversified away from traditional 60/40 portfolios into hard assets. Gijsels noted that gold-related investments remain underrepresented globally, offering further upside potential.
UBS strategist Joni Teves also expects the U.S. gold rally to continue. Rising positions and an expanding investor base support higher prices. Teves highlighted that the Fed’s easing cycle and weaker dollar will further strengthen gold. Even when the rally moderates, she predicts gold will stabilize at historically higher levels over the long term.
Overall, investors increasingly view gold as a strategic asset, not just a hedge. The U.S. gold rally signals a shift in investment behavior toward safer, tangible assets. Experts suggest diversifying with gold can mitigate risk during turbulent economic periods. As uncertainty persists, gold remains a core option for global portfolios.
For more business updates, visit DC Brief.
