Markets fell on news of the US shutdown, but gold again performed well.

On October 1, 2025, the US federal government began its first federal government shutdown in seven years. The closure of government offices due to budgetary disputes in Congress alarmed the markets, with stock indices sliding and Dow Jones and S&P 500 futures falling by nearly 1%. With government data out of the question, investors were forced to rely on alternative indicators to gauge the temperature of the economy. Amidst this uncertainty, investors turned to safe havens, and gold prices took a surprising leap.

Shutdown pressure on the market

US stock market futures opened slightly higher on October 8 after a decline the previous day, but investors were focused on comments from Federal Reserve officials and economic data impacted by the shutdown. Exit sentiment in the first week of October prompted many traders to warn against withdrawing funds from overvalued stocks and investing them in other assets. While the stock market is currently near record highs, experts believe caution and diversification are warranted.

The government shutdown affected workers’ wages and thousands of jobs. Many economic reports, such as non-farm payrolls and inflation data, were delayed. Many people watching gold prices in the market were Googling terms like “gold price today” or “gold price chart.” This shows that even small details can impact investor confidence.

Gold as a haven

Gold has always been considered a reliable asset in uncertain environments. Spot gold rose 1.3% to $4,034.59 per ounce in the second week of October, and December futures reached $4,056.80. This represents a nearly 54% jump from the previous close, making gold one of the best-performing assets of 2025. The shutdown deprived investors of government data, but economic and political uncertainty, a weak dollar, and expectations of a Federal Reserve interest rate cut further boosted gold’s luster.

Several factors are contributing to the rise in gold prices: rising geopolitical tensions, conflict in the Middle East, the war in Ukraine, political turmoil in France and Japan, and the weakening of US liquidity. Gold prices reached $3,875 per ounce in early October. Analysts say that if the Federal Reserve cuts interest rates by 25 basis points and continues to do so in December, gold prices could reach $4,530 per ounce in 2026.

Such a surge also attracted other metals like silver. Silver rose 2.2% to $48.85 per ounce, close to its previous record. This reminded investors to keep an eye on silver and other metals in addition to watching the “gold price today.”

Popularity of Gold ETFs

This historic surge in gold prices is not only due to physical purchases but also due to record investments in gold ETFs. According to a NASDAQ report, the shutdown created fear among investors, and they shifted from stocks to gold, causing the gold price to reach $3,875. The gold ETF “SPDR Gold Shares” (GLD) is the first US ETF, which has assets of $124.53 billion, and its net asset value is $352.09. This fund has gained 46.8% in 2025.

The second largest ETF, iShares Gold Trust (IAU), has assets of $59.15 billion; its NAV is $72 08 and it has increased by 47%. For smaller investors, there is also an ETF called iShares Gold Trust Micro (IAUM), which has assets of $4.72 billion and a NAV of $38.14; it has also increased by approximately 47.1%. Furthermore, the abbreviated Physical Gold Shares (SGOL) have assets of $6.24 billion and have increased by approximately 46.9%. These figures clearly indicate that US investors have adopted instruments like gold ETFs to take advantage of the gold rally.

A Reuters report stated that gold ETFs worldwide have attracted a record $64 billion in inflows, with a massive $17.3 billion in September alone. Analysts say investors fearful of high-valued stocks are looking to gold as a haven. Some investment strategists recommend a portfolio with at least a 5% gold allocation; some experts suggest up to 20%. It is also being said that investors should adopt a long-term view to take advantage of the fluctuations in “gold price today”.

Should investors be worried?

There is also a “fear of missing out” (FOMO) in the market; many people are rushing to buy gold to avoid missing out on the rally. Despite this, experts warn that gold also does not rise consistently. Reuters quoted BCA Research analyst Rukaya Ibrahim as saying that assets in gold ETFs currently account for only 2.6% of the total portfolio; this was 1.9% a year ago. This means that the market still has room for expansion.

However, gold prices have a volatility of around 10-15%. UBS analysts themselves say that the weakness of the US dollar and a potential rate cut by the Federal Reserve could support gold, but some corrections are possible before that. So when you look at “gold price today” or “gold rate today,” remember that every rise can be followed by some decline.

There are also some concerns from an environmental perspective. Increasing hunger fuels illegal mining and the use of mercury, which negatively impacts water and local communities. Therefore, it’s important to consider the big picture when investing in gold.

Conclusion

The US government shutdown and economic instability created unease in the stock market, but gold continued to rise. Gold prices have now surpassed $4,000 per ounce, making it the fastest-growing asset class of 2025. Potential interest rate cuts, a weak dollar, geopolitical tensions, and central bank buying have fueled this rally. Heavy investment in gold ETFs also supported prices, making it easier for ordinary investors to participate in gold.

As a US reader, if you’re considering investing, it’s worth keeping an eye out for terms like “gold price today” and “gold ETF.” While gold is a safe bet, overreliance on any one asset is not advisable. Build a diversified portfolio, understand market uncertainties, and invest only with legal and ethical guidance. Gold prices may stabilize somewhat after the shutdown, but so far, gold has demonstrated that it can provide investors with a sense of security even during times of instability.

Disclaimer: The information provided in this article is for general information purposes only. It does not constitute investment advice. Consult your financial advisor before investing in gold or the stock market.