Analysis: U.S. Government Shutdown Risk Unsettles Markets, Gold Prices Hit New Highs

Reported by Golden Finance, on Monday, gold prices surged past the $3,800 per ounce mark due to market unease over the potential U.S. government shutdown and a weakening dollar. Concerns about government debt levels, inflation, and doubts over the dollar's status as a reserve asset have driven gold prices sharply higher, with a cumulative increase of 45% so far this year. Analysts and market participants noted that a major driver behind the recent gold price surge is Western investors heavily purchasing gold-backed ETFs. Deutsche Bank analysts wrote: "The strong re-entry of ETF demand into the market signifies two forms of 'aggressive' buying—coming from central banks and ETF investors." U.S. President Trump is set to meet with lawmakers on Monday in an effort to break the deadlock. If no agreement is reached on short-term funding, federal funds will expire on Tuesday.