The price of spot gold has crossed $4,000, continuing the historic rally as the U.S. government shutdown continues, after gold crossed $3,900 on Monday, and gold futures for the month of December crossed $4,000 on Tuesday.
The rally sparked uncertainty in the U.S. economy about the U.S. dollar and America’s place in the global economy, specifically the government shutdown that began on the 1st of October after a stopgap funding bill failed to pass through Congress, with key disagreements on spending and healthcare subsidies.
Source: GoldPrice
The price of gold today was $4,032 per ounce at the time of reporting. Silver is also hitting all-time highs, currently hovering around $48.7 per ounce.
Gold has experienced a surge every time large-scale events—macroeconomic or otherwise—impacted the economy negatively, such as the Global Financial Crisis, Covid-19, the U.S.-China trade war, and currently concerns over debt and deficit.
Capital market professional Jimeet Gandhi said a week ago on LinkedIn that while the price of gold is rising, the value of gold ETFs has remained relatively flat, suggesting the rally is largely driven by institutions and not retail investors.
When asked what he thought of the situation as it stands, Gandhi said. “I believe it will go $5000 by December 2026,”