Gold prices once again took the global spotlight after breaking a new record high, approaching US$3,900 per ounce in the latest trading session. The surge was triggered by political turmoil in Washington, where Congress’s failure to approve the budget bill led to an official shutdown of the U.S. government.
The deepening political uncertainty weighed on the U.S. dollar, while global investors flocked to safe-haven assets. Spot gold briefly traded around US$3,893, while December futures jumped to US$3,922—marking the highest level in history.
Not only gold, but other precious metals such as silver and platinum also soared sharply, reaching their highest levels in more than a decade. In contrast, industrial metals like copper reversed lower, although still holding modest weekly gains.
Market conditions were further complicated by the potential delay in the release of key economic data such as Nonfarm Payrolls, as many federal agencies have ceased operations due to the shutdown. Normally, labor market data serves as a key reference point for markets in assessing the Federal Reserve’s monetary policy direction.
Amid this uncertainty, Fed officials remain cautious. Some emphasized that further rate cuts could only be considered if the labor market weakens significantly. This has added to investor doubts over monetary policy direction, further strengthening gold’s role as a safe-haven asset in times of turmoil.
With a combination of U.S. domestic political crisis, dollar weakness, and monetary policy uncertainty, gold has firmly positioned itself as the market’s star. Many analysts believe that if uncertainty persists, the chance for gold to break above US$4,000 per ounce is no longer mere speculation, but a very real possibility in the near term.