Gold Reclaims $4,000/oz Level as Dollar Slips, U.S. Shutdown Woes Persist
Gold surged above $4,000 per ounce on Monday as a weaker dollar and U.S. government shutdown fears sparked strong safe-haven demand, highlighting the metal’s appeal amid heightened economic and political uncertainty.
Spot gold was last seen trading near $4,012/oz, up nearly 1.8% on the day, while U.S. gold futures settled around $4,030/oz. The U.S. dollar index—a measure of the dollar’s strength against major currencies—fell to a three-week low, pressured by dovish expectations from the Federal Reserve and continued political gridlock in Washington.
“The market is clearly pricing in risk,” said one senior commodities analyst. “With the dollar losing momentum and Treasury yields flattening, gold is reclaiming its status as a preferred hedge against both fiscal instability and policy uncertainty.”
The latest rally comes as lawmakers struggle to reach an agreement to fund the U.S. government, raising the specter of a partial shutdown that could disrupt economic data releases and delay federal payments. Investors are also closely watching upcoming labor market figures, which could influence the Fed’s next policy decision.
Meanwhile, physical demand for gold remains steady in Asia, particularly from India and China, where festive-season buying has added additional support. Central banks have also maintained a robust pace of gold purchases this year, seeking to diversify reserves away from the U.S. dollar.
From a technical perspective, analysts note that gold has broken through a critical resistance zone between $3,950 and $4,000, indicating that bullish momentum could persist if the metal remains above this level. Immediate support is seen near $3,960, while a sustained move higher could open the path toward $4,050–$4,100.
Silver and platinum also moved higher in tandem, gaining 1.2% and 0.9%, respectively. Mining equities rallied, with the NYSE Arca Gold Miners Index climbing more than 2%.
For now, the narrative in the gold market remains clear: safe-haven demand is strengthening as investors hedge against political and economic turbulence. If the U.S. shutdown impasse deepens and the dollar continues to weaken, gold’s grip above $4,000 may prove more durable than many expect.