Gold prices hit a new all-time high, approaching $4,000 per ounce as investors seek safe havens amid the US shutdown.
Gold prices continue to soar, setting new records and approaching $4,000 per ounce (31.1 grams). According to dpa, the New York Stock Exchange price reached $3,969 during trading on October 6, setting a new all-time high.
Gold closed at $3,960 per ounce, $74 above its opening price. Prices have risen more than 3% over the week and nearly 50% since the start of 2025, according to Bloomberg.
Market Reacts to US Political Crisis
Experts cite the US government shutdown, which began on October 1, as the main driver of the price increase. Due to disagreements between Democrats and Republicans, the Senate failed to pass the budget, leading to the shutdown of several federal agencies.
“Investors are nervous about the suspension of key economic reports, including labor market data,” analysts note. “Therefore, capital is temporarily fleeing to gold as a safe haven.”
Gold prices began rising even before the shutdown, but political instability accelerated the process.
Supporting factors: the Fed, the dollar, and geopolitics
Bloomberg points out that interest in gold is being fueled by the Fed’s rate cut, the weakening dollar, and global geopolitical risks.
In September, the Federal Reserve cut its interest rate for the first time in nine months by 25 basis points, to 4-4.25%, making gold a more attractive asset.
Moreover, global central banks continue to actively replenish their gold reserves, viewing the precious metal as a safe haven amid uncertainty surrounding the policies of the Donald Trump administration.
Forecasts: Gold to Exceed $4,000 as Early as 2026
Economists at Deutsche Bank stated back in September that gold could trade steadily above $4,000 per ounce in 2026.
The reasons include strong demand from central banks, the potential for further dollar weakening, and a continuation of the interest rate cut cycle.
“We see a structural upward trend in gold, driven by political risks and the revaluation of dollar assets,” the bank said in its report.
Gold as an Indicator of Global Uncertainty
According to experts, the current price rise reflects not only domestic problems in the US but also the general rise in anxiety in global markets.
Amid the government shutdown, geopolitical conflicts, and a weakening dollar, gold is once again confirming its status as the most reliable safe haven asset.
Tether, the issuer of the world’s largest stablecoin, USDT, is considering a major entry into the gold market.
The publication, citing informed sources, reports that Tether has been in talks to invest in all stages of the gold supply chain—from mining and refining to trading and royalty payments.
