Gold prices surged to fresh record highs this week as U.S. investors rushed toward safe-haven assets amid fears of a looming government shutdown.
The gold price climbed as much as 0.9% to an unprecedented $3,867.25 per ounce, surpassing Monday’s peak, and is now on track for its strongest annual performance since 1979.
The rally is being fueled by political gridlock in Washington. A meeting between congressional leaders and President Donald Trump ended without a short-term funding deal, increasing the likelihood of a shutdown.
Such an outcome could delay key economic reports, leaving the Federal Reserve with limited data ahead of its next interest-rate decision. Investors are betting that uncertainty and weaker economic signals will keep gold in demand.
This surge caps a remarkable year for bullion. The gold price has jumped nearly 47% in 2025, supported by central-bank buying and the Fed’s resumption of interest-rate cuts.
Analysts at Goldman Sachs and Deutsche Bank forecast the rally could extend further if economic instability persists.
Lower U.S. Treasury yields and a softer dollar have also strengthened gold’s appeal, as the metal becomes more attractive relative to interest-bearing assets.
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Meanwhile, leadership changes at the two largest gold producers added another layer of intrigue to the sector.
Newmont Corp. confirmed CEO Tom Palmer will step down at the end of December, while Barrick Mining Corp. surprised markets with the sudden departure of Mark Bristow.
Both companies are closely watched by investors given their outsized influence on global supply.
Other precious metals also saw movement, though not as dramatic. Silver and platinum, which had recently spiked to multi-year highs, paused on Tuesday.
Still, both metals remain up more than 60% year-to-date, driven by supply shortages and strong ETF inflows.
Market strategists caution that the current rally is unlike past shutdown-related moves. “Gold is internalizing both a slowdown in jobs growth and the risk of political standoff,” noted Nicky Shiels of MKS PAMP SA.
With the gold price smashing records and safe-haven demand on the rise, U.S. investors are watching closely for whether Washington can strike a deal or whether further turmoil will keep fueling bullion’s historic climb.
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