Sept 29, 2025 – Gold prices have surged past the historic $3,800 an ounce mark for the first time ever, as investors rushed toward the precious metal amid expectations of U.S. interest rate cuts, fears of a looming government shutdown, and growing geopolitical uncertainties.
Spot gold climbed 1.6% to $3,820.96 an ounce by 09:32 a.m. ET (1332 GMT), after hitting a session peak of $3,831.19. This milestone further strengthens gold’s position as one of the most reliable safe-haven assets in times of global instability.
The U.S. dollar index slipped 0.3%, lowering the cost of gold priced in dollars for international buyers.
Government Shutdown Concerns Fuel the Rally
“Demand for safe havens centered on the possible U.S. government shutdown is a major reason behind gold’s surge,” explained David Meger, director of metals trading at High Ridge Futures.
He added, “The dollar is under slight pressure because of that, which certainly benefits the precious metals sector.”
President Donald Trump is scheduled to meet with key congressional leaders later today to discuss extending government funding. Without an agreement, a federal shutdown will begin on Wednesday.
Geopolitical Tensions Add to Uncertainty
Adding to investor concerns, Russia’s defense ministry reported that its forces had taken control of the village of Shandryholove in Ukraine’s eastern Donetsk region.
The combination of war-related instability and U.S. fiscal risks has further strengthened gold’s appeal.
Strong Year for Gold, Fed Rate Cuts Expected
Gold has already gained 45% so far this year, fueled by expectations of monetary easing and global uncertainty. The U.S. Personal Consumption Expenditures (PCE) Price Index met forecasts on Friday, reinforcing hopes of Federal Reserve rate cuts in October and December.
“The PCE figures from last week were seen as not preventing one or two more Fed rate cuts… they remain a supportive element for gold and silver,” Meger added.
Meanwhile, in the corporate sector, Newmont confirmed that CEO Tom Palmer will step down at the end of the year after over a decade with the world’s largest gold mining company. On the same day, Barrick also announced the departure of its CEO, Mark Bristow, signaling significant shifts in leadership within the global mining industry.
