The post Gold rallies to record high as US shutdown, Fed rate cut bets fuel demand appeared on BitcoinEthereumNews.com.

Gold extends its record-breaking rally as the US shutdown drives safe-haven flows. Fed rate-cut bets strengthen, with markets pricing a 96% chance of a 25 bps cut in October S&P Global Manufacturing PMI held steady at 52, while ISM PMI rose modestly to 49.1 but remained in contraction. Gold (XAU/USD) soars to yet another record high on Wednesday, extending its relentless climb as the United States (US) government shutdown fuels safe-haven demand. At the time of writing, XAU/USD is trading around $3,870 during the American session, after peaking at a fresh all-time high near $3,895. The US government officially entered a shutdown early Wednesday after Congress failed to pass a funding bill for the new fiscal year, forcing many federal operations to halt while essential services remain open. A last-minute stopgap measure that had cleared the Republican-controlled House was put to a vote in the Senate on Tuesday but fell short, receiving only 55 votes in favor versus the 60 needed to advance. The stalemate has left hundreds of thousands of federal employees facing furloughs or working without pay and is expected to delay the release of key US economic data, including Weekly Jobless Claims on Thursday and the Nonfarm Payrolls (NFP) report on Friday. Meanwhile, the political deadlock has piled additional pressure on an already broadly weak US Dollar (USD), making Gold more affordable for overseas buyers. On top of that, prospects of further interest rate cuts by the Federal Reserve (Fed) and elevated geopolitical risks add another layer of support to the metal’s rally. Market movers: Markets eye ADP jobs, PMIs as shutdown jitters linger The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is hovering around 97.80, after slipping to its lowest level in a week. The index found…

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Filed under: News - @ October 2, 2025 2:28 am