Gold prices have reached a new high as the US government faces the risk of a shutdown

Gold prices broke through $3,839.52 per ounce in early trading on Tuesday (September 30), hitting a record high, as concerns over a possible US government shutdown boosted safe-haven demand.

Bloomberg reported that in the previous trading day, US President Trump's consultations with congressional leaders failed to reach an agreement on short-term spending plans, intensifying market concerns over a government shutdown. Analysis indicates that if the government shuts down, the release of key economic data will be hindered, and investors will lack references when assessing the US economy and the Federal Reserve's interest rate decision for next month. Since the beginning of this year, the price of gold has risen by more than 45% cumulatively, continuously setting new highs, mainly driven by strong buying from central banks around the world and the Federal Reserve's resumption of interest rate cuts. Market players expect that with strong investment demand, this upward trend is likely to continue.

As of 8:17 a.m. Singapore time, spot gold was quoted at $3,837.28 per ounce, approaching its intraday high. Silver was quoted at $46.94 per ounce, platinum at $1,604.27, and palladium remained unchanged.