Gold notches another record high as U.S. government shutdown begins

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Gold prices on Wednesday notched a record high for the third straight session, while the U.S. dollar weakened with the start of the U.S. government shutdown, which could potentially delay key data used by the Federal Reserve when deciding its policy path.

Spot gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) ticked up 0.2% overnight to $3,866, paring some gains after hitting a record $3,875.53. The dollar index (DXY [https://seekingalpha.com/symbol/DXY]) slipped 0.3% to $97.49, its lowest level in a week.

Earlier this week, the Bureau of Labor Statistics said it would halt economic data releases [https://seekingalpha.com/news/4499923-bureau-of-labor-statistics-to-shut-down-during-government-shutdown] in the event of a shutdown. This includes the nonfarm payrolls report due Friday, an important data point for the Fed in deciding the next interest rate cut.

If the shutdown lasts two weeks, the upcoming Consumer Price Index and Producer Price Index data could also be delayed.

To note, gold has been on the rise, with the precious metal ending September with its best monthly percentage gain since January 2012. It soared over 47% YTD, on track for its biggest annual gain since 1979.

Goldman Sachs forecast that gold prices will reach $4,000 by mid-2026, driven by strong structural demand from central banks and easing from the Fed (which supports ETF demand for gold).

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