WASHINGTON (dpa-AFX) - Gold soared to a new record high on Monday against the backdrop of a looming US government shutdown and the Russia-Ukraine war getting fiercer over the weekend, increasing demand for the safe-haven metal.
Front Month Comex Gold for October delivery jumped by $44.70 (or 1.18%) to $3,820.90 per troy ounce.
Notably, this is a new record closing high for gold, which has risen for three consecutive sessions.
Front Month Comex Silver for October delivery gained by 37.40 cents (or 0.81%) to $46.612 per troy ounce. This is a new 52-week high for silver, which also increased for the three straight sessions.
The surge by the price of gold came amid modest weakness in the value of the US dollar, with the US Dollar Index slipping 0.2 percent.
The moves come as the US is facing the threat of a government shutdown, as the passage of a contentious bill to extend government funding by September 30 (tomorrow night) is held up amid disagreements between the Democrats and Republicans. The bill keeps the government machinery running for another seven weeks while Congress finishes its annual spending bills.
Democrats are demanding immediate talks on healthcare amendments, federal workforce cuts, and funding priorities failing which they are willing to see the government shut down.
Republicans, on the other hand, are unwilling to negotiate any terms until the bill is allowed to be passed.
The chances of resolution are dimming with the deadline closing in.
US President Donald Trump is meeting top Democratic and Republican leaders today to discuss a solution.
Without a deal, a partial shutdown would begin from Wednesday and essential services could be disrupted across the US.
As the Russia-Ukraine war gets fiercer day by day, in its latest attack, Russia aerially bombarded Ukraine for nearly 12 hours, involving nearly 600 drones and several dozen missiles.
Ukraine's President Volodymyr Zelenskyy called the attacks 'vile' and warned that his country would retaliate.
Concerns about the US becoming more involved in the war have risen after Zelenskyy asked the US to send long-range Tomahawk missiles to combat the Russian invasion. Responding to the request, US Vice President JD Vance stated that US President Donald Trump would make a final decision.
With a recent spike in Russian aerial activity over NATO nations, Denmark has ordered a ban on civil drone flights, stating that it sighted drones at sensitive locations yesterday.
Israeli Prime Minister Benjamin Netanyahu is meeting Trump today at the White House to discuss the future of Gaza. Earlier on Sunday, in a social media post, Trump subtly hinted at a peace deal.
Aside from shutdown threat, investors are also watchful of an array of economic releases in the coming days, including job openings, ISM manufacturing PMI, private payrolls, and the non-farm payrolls report for more clues on the economy's health.
On the trade front, last week, Trump announced new tariffs on imported drugs, trucks, and furniture that take effect from October 1, compounding the uncertainty to the economic outlook.
Last Friday, the US PCE data, which is the US Federal Reserve's preferred inflation gauge, came in line with expectations, reinforcing bets for rate cuts this year.
According to CME Group's FedWatch Tool, investors are betting on an 89.3% chance of a 25 basis point interest rate cut at the Fed's October 28-29 meeting.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
