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Gold smashes record, tops $3,800 as dollar weakens and shutdown looms
Gold surged to a new all-time high above $3,800 an ounce Monday, fueled by a weaker US dollar and investor anxiety over a potential government shutdown.
Gold prices surged to a new all-time high Monday, breaking above $3,800 an ounce as a weaker U.S. dollar and fears of a government shutdown drove investors toward safe-haven assets.
The precious metal hit a record $3,812.05, marking its seventh week of gains. The rally wasn’t isolated to gold: silver jumped to its highest price since 2011, while platinum and palladium also saw strong gains.
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Two main factors fuel the boom:
- A falling dollar as investors brace for a potential U.S. government shutdown, which would halt key economic data.
- Betting on Fed rate cuts, as a shutdown would likely signal a weakening economy, pushing the Federal Reserve toward lowering interest rates sooner. This makes non-yielding assets like gold more attractive.
The record run is part of a massive 45% price increase for gold this year, driven heavily by central bank purchases and the new expectation of easing monetary policy.
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Last update: Sep 29, 2025