The U.S. government faces a potential shutdown as Congress remains deadlocked over a funding agreement, with federal funds set to expire at 12:01 AM ET on Wednesday. The impasse has driven gold prices to a high of $3,871 per ounce on Monday, reflecting market anxiety.
Vice President JD Vance has warned of an impending shutdown, while Senate Minority Leader Chuck Schumer accuses Republicans of obstructing government operations. A Republican-proposed short-term funding bill was rejected by Democrats, who demand an extension of health insurance subsidies. The stalemate requires bipartisan support in the Senate, but consensus remains elusive.
The looming shutdown raises concerns about delayed economic data, such as nonfarm payrolls, which could impact the Federal Reserve's rate decision in October. Gold prices have surged 45% this year, fueled by ETF inflows, central bank purchases, and speculation over dollar weakness and inflation.
U.S. Government Shutdown Threat Drives Gold to $3,871
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.