(Bloomberg) — Gold rose to another record — closing in on the $4,000 an ounce mark — as the US Federal government shutdown dragged on.
Bullion advanced as much as 1.2% to $3,932.02 an ounce. The disruption in the US has delayed payroll data, which was due on Friday, making a murky economic outlook even more unclear.
Most Read from Bloomberg
With the lack of official figures, traders are depending on private reports for more clarity on the economy, while the US central bank is finding it challenging to make monetary policy decisions. Rates traders are still pricing in a quarter-point cut for the end of the month, which will benefit gold further as it doesn’t pay interest.
The precious metal has surged almost 50% this year, spurred by the massive jolt of economic and geopolitical uncertainty that President Donald Trump has injected into the market. The Federal Reserve’s rate-cutting cycle and central bank purchases to diversify away from dollar assets have also been major tailwinds.
Private investors piling into gold-backed exchange-traded funds have contributed to the latest leg in the rally, with total holdings expanding the most in more than three years last month. Strong flows continued in the first week of October.
The fund flows have “been nothing short of remarkable,” said Priyanka Sachdeva, an analyst at Phillip Nova Pte. It’s “a testament to how deeply embedded the ‘buy the dip in gold’ mindset has become,” she said.
Gold rose 1.1% to $3,930.75 an ounce as of 11:51 a.m. Singapore time after capping a seventh weekly gain on Friday. The Bloomberg Dollar Spot Index advanced 0.3%. Silver, platinum and palladium all climbed.
The “backdrop is intact with the Fed on path to cut rates further, alongside the weakening labor market,” said Ahmad Assiri, an analyst at Pepperstone Group Ltd. However, “it feels like the risk-reward dynamics are shifting and a tactical pullback would be viewed as a healthy phase within an extended rally,” he said.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
