Gold hits new record high on safe-haven demand

Spot gold increased by 53% YTD in 2025

Gold prices rose to a fresh record close on Wednesday as investors flocked to safe-haven assets amid the ongoing US government shutdown and broad expectations that the Federal Reserve will continue easing borrowing costs at its October meeting.

December gold futures gained 1.65%, or $66.1, to settle at $4,070.5 an ounce, marking the most active contract’s 44th record close so far this year.

The rally was supported by several factors, including the eighth day of the US government shutdown and market anticipation of congressional votes on two temporary funding bills, as partisan divisions over spending priorities persist.

Geopolitical unrest in Ukraine and political tensions in France and Japan also boosted demand for the precious metal, alongside expectations of further Fed rate cuts when policymakers meet on Oct. 28–29.

Minutes from the Fed’s last meeting showed broad support for a rate cut in September due to concerns about labor market weakness, but also revealed divisions over the pace of future reductions amid fears of resurgent inflation.