Gold Hits Records After U.S. Government Shutdown

A U.S. government shutdown began Oct. 1 after lawmakers failed to pass funding, driving safe-haven flows that pushed gold to fresh records across several sessions. U.S. spot and futures were quoted near $3,875–$3,916 an ounce (up roughly 48–50% year-to-date in 2025), while U.S. futures slipped about 0.5%. Indian local bullion markets hit new highs, with reports of Delhi quotes breaching about Rs121,000 per 10 grams and city-level prices around Rs117,000–Rs121,000; silver also reached record levels. Investors cited expectations of Federal Reserve rate cuts, a softer dollar, lower Treasury yields, strong central-bank buying and ETF inflows as drivers of the rally. Analysts warned the shutdown could delay key economic releases including September nonfarm payrolls, freeze regulatory activity and further cloud the Fed’s policy path, complicating the outlook for equities despite historically strong seasonal momentum.