Gold surged to a record high as a US government shutdown raised market uncertainties, while Wall Street futures fell and global markets reacted unevenly.
Gold prices surged to a record $3,875.53 on Wednesday as the US government officially shut down after lawmakers failed to reach a funding agreement, with Wall Street futures falling alongside a weaker dollar. The closure halted non-essential operations, leaving hundreds of thousands of federal employees temporarily unpaid and potentially disrupting social benefit payments.
President Donald Trump warned the shutdown would target Democratic priorities, stating: “So we’d be laying off a lot of people that are going to be very affected. And they’re Democrats, they’re going to be Democrats.” Meanwhile, Senate Republicans failed to secure the Democratic votes needed to pass a temporary funding measure.
Global markets reacted unevenly, with Asian and European equities largely rising, while Tokyo, Paris, and Frankfurt slipped. Investors remain cautious, as key US economic data, including Friday’s non-farm payrolls report, could be delayed, affecting Federal Reserve decisions.
Currency markets saw the dollar retreat, while India’s rupee made minor gains despite ongoing trade tensions with the US.