US Government Shutdown Spurs Increased Demand for Gold

The ongoing funding lapse in the 2025 United States federal government shutdown has driven renewed safe-haven demand for gold, as market participants weigh the implications of delayed economic data and elevated uncertainty.

Gold prices rose on Friday with spot gold up 0.7% at about $4,005.21 per ounce, and U.S. gold futures for December delivery gaining 0.5% to $4,009.80 per ounce.

According to Reuters, analysts pointed to the weaker dollar, which fell from a four-month high, as one factor making bullion cheaper for non-U.S. currency buyers.

The shutdown has delayed publication of key economic indicators such as the monthly non-farm payrolls report.

In turn, private sector data showing job losses in October has heightened speculation that the Federal Reserve may cut interest rates in December; near-term expectations show approximately a 66% chance of a 25-basis-point cut.

Historically, gold tends to perform well during periods of policy uncertainty and low interest rates.

In October the metal passed $4,000 per ounce for the first time amid shutdown fears, weak data flows and central bank interest.

The shutdown’s economic disruption is also considerable, as it is being counted in billions, not millions. Estimates suggest each week of suspended federal funding could shave 0.1–0.2 percentage points off U.S. GDP growth, as government procurement, assistance programmes and data releases are delayed.

In the present episode, the combined effect of data delays, heightened risk perception and expectations of looser monetary policy appears to have bolstered demand for gold as a hedge.