Gold prices soared to an all-time high in Asian trade on Monday, driven by safe-haven demand amid fears of a looming U.S. government shutdown and growing expectations of Federal Reserve rate cuts.
Spot gold touched a record $3,799.41 per ounce, while U.S. gold futures for December delivery peaked at $3,828.40/oz. Broader precious metals joined the rally, with spot silver up over 2% to a 14-year high of $47.03/oz, and platinum jumping 3% to a 12-year peak of $1,619.78/oz.
Markets are bracing for a potential shutdown, with U.S. federal funding set to lapse at midnight on September 30. Ongoing bipartisan talks have yet to break the deadlock, with Republicans pushing for a stop-gap bill until November and Democrats demanding healthcare and Medicaid funding reversals before any new budget approvals. President Donald Trump is scheduled to meet congressional leaders on Monday to mediate.
A shutdown would delay key U.S. economic releases, including the nonfarm payrolls report, and risk disrupting broader economic activity if prolonged. Combined with Trump’s aggressive stance on the Fed and trade policies, investors are shifting heavily into gold as a store of value.
So far in 2025, gold has surged nearly 43% year-to-date, marking its strongest rally since 1979, when geopolitical turmoil in Iran fueled a historic commodities boom.
