Quick overview

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Gold reached a new all-time high as the US government shutdown began, potentially threatening disruptions such as delays in the release of important economic data.

A fifth day of rallying saw the bullion asset rise to $3,875.5 an ounce. The White House issued its first directive in seven years after the failure of a stopgap funding bill to prevent a government closure in Washington, instructing government agencies to “execute their plans for an orderly shutdown.”

A suspension of federal operations risks adding pressure to the US dollar, while the release of key economic data, like Friday’s non-farm payroll figures, may be delayed. This year, gold has gained over 47 percent, positioning it for the largest annual increase since 1979.

Central bank purchases and rising holdings in gold-backed exchange-traded funds have supported the rally since the Federal Reserve began cutting interest rates again. September saw the highest monthly ETF inflows in three years. Markets are also closely watching differing opinions among US officials regarding monetary policy

Boston Fed President Susan Collins said that a weaker labor market might require additional rate cuts this year, but officials must remain cautious about potential sustained inflation.

Meanwhile, Dallas Fed President Lorie Logan advised caution when considering further interest rate cuts as long as inflation remains above target and the labor market stays largely balanced. Due to these concerns and ongoing worries about the central bank’s independence, gold continues to attract significant haven demand.

Last week, Fed Governor Lisa Cook’s lawyers urged the US Supreme Court to allow her to stay in her position while she challenges President Donald Trump’s attempt to fire her.