Gold closes at new record above $4,000

Gold prices rise to an all-time high as the US government shutdown showed no signs of resolution.

Gold prices rose at the close of trading on Tuesday, with the most active futures contracts settling at a fresh record high, driven by expectations of a Federal Reserve rate cut this month and rising demand for safe-haven assets amid the ongoing US government shutdown.

December gold futures climbed 0.7%, or $28.1, to $4,004.4 an ounce.

Peter Grant, chief metals strategist at Zaner Metals, told Reuters that safe-haven inflows continue as the US government remains shut, with no signs of a resolution in sight, keeping demand for gold strong.

The precious metal has gained 51% since the start of the year, supported by a combination of factors including expectations of US interest rate cuts, growing political and economic uncertainty, central bank purchases, inflows into exchange-traded funds, and a weaker dollar.

The US government shutdown, now in its seventh day, continues to delay the release of official economic data, prompting investors to rely on alternative indicators to gauge the timing and scale of rate cuts.

Investors are expecting a 25-basis-point cut at the Federal Open Market Committee’s policy meeting on Oct. 28–29, followed by another cut in December. The Fed resumed lowering borrowing costs last month for the first time in 2025.