Gold prices soared to record highs during Asian trading on Monday, fueled by rising safe-haven demand amid mounting concerns of a potential U.S. government shutdown and growing bets on imminent Federal Reserve rate cuts.
Spot gold reached $3,799.41 per ounce, while December futures climbed to $3,828.40 per ounce. Silver jumped more than 2% to above $47, its highest level in 14 years, while platinum surged 3% to $1,619.78 per ounce, marking its strongest level in over a decade.
The rally comes as U.S. federal funding is set to expire at midnight on September 30, with Congress locked in a stalemate. Republicans are pushing for a short-term spending bill, while Democrats demand the reversal of cuts to healthcare and Medicaid before approving any deal. President Donald Trump is scheduled to meet congressional leaders on Monday in an attempt to break the deadlock.
A shutdown could delay the release of key nonfarm payrolls data this week and weigh on economic activity. According to the Congressional Budget Office (CBO), the previous partial shutdown in 2018-19 lasted 35 days and was estimated to have reduced GDP by $11 billion.
