FX.co ★ Gold Surges to Record Highs

Gold continued its upward trajectory for the sixth consecutive session, reaching a new record high of $3,895 per ounce. This surge was driven by the US government shutdown, which increased the demand for safe-haven assets, coupled with weak labor market data that bolstered expectations for Federal Reserve interest rate cuts. The halt in federal operations threatens to delay crucial economic reports, including the nonfarm payrolls that were scheduled for release on Friday and the CPI inflation data set for October 15. This could potentially leave the Federal Reserve with insufficient data before making upcoming policy decisions. The latest ADP report revealed an unexpected decline in private-sector employment in September, prompting traders to anticipate two 25-basis-point interest rate cuts before the end of the year. Gold has now risen nearly 50% in 2025, on track for its strongest annual performance since 1979. This impressive increase is supported by significant central-bank purchases, growing investments in gold-backed exchange-traded funds (ETFs), and escalating geopolitical and trade tensions.