Gold Sees Escape, Breaks $3,800 Amid Market Anxiety
Gold prices surged sharply on Monday (September 29, 2025), breaking through $3,800 per troy ounce for the first time this year. This surge was triggered by market concerns about a potential government shutdown in the United States, which could disrupt economic stability and delay key decision-making by the US central bank, the Federal Reserve (The Fed).
Investors are increasingly cautious because there is no budget agreement between the White House and Congress, with the government shutdown deadline just hours away. If a shutdown does occur, crucial economic data such as the jobs report (NFP) could be delayed. This deprives the market of a key guide in interpreting the Fed's policy direction—a situation that has prompted capital flight to safe-haven assets like gold.
The situation is further complicated by expectations of an imminent Fed interest rate cut. The market believes there is a chance the central bank will adopt a more dovish stance if the economy slows. With interest rates potentially falling, bond yields also decline, strengthening gold's appeal as a non-interest-bearing but stable asset.
At the same time, the US dollar is also under pressure. The dollar index (DXY) has weakened against most major global currencies, making gold cheaper and more attractive to global buyers. This combination of political, monetary, and technical factors is currently driving gold prices to skyrocket on the global market.
Source: Newsmaker.id
