The price of Gold (XAUUSD) surged at the beginning of trading on Wednesday (October 1, 2025), reaching an all-time high of $3,875 per troy ounce. Compared to the closing price on Tuesday, Gold increased by over $17 or 170 pips.
The appeal of Gold as a safe haven has risen significantly as the United States government faces a potential shutdown (temporary closure or limited services). The US Congress has been unable to reach a temporary budget agreement to fund the government through November 21.
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The House of Representatives did pass a temporary budget; however, it failed to secure enough votes in the Senate, which required 60 votes, but only garnered support from 55 senators. The Senate, backed by the Democratic Party, rejected the temporary budget proposal, leading to an impending shutdown on October 1, local time.
The Congressional Budget Office estimates that around 750,000 government employees will be furloughed. Consequently, the release of economic data may be delayed, making it challenging for market participants to assess the state of the US economy. This situation could further benefit Gold, indicating that its price may continue to rise.
