Gold Surges to Record High as USD Weakens on Shutdown Fears

Gold prices have reached new all-time highs at $2,685 per ounce, gaining 1.8% as the US dollar index dropped 0.6% amid government shutdown concerns and mounting economic uncertainty. The precious metal's rally accelerated after Congressional budget negotiations stalled, raising the specter of a federal shutdown that could disrupt economic data releases and government operations. The dollar weakness has made gold more attractive to international buyers, while rising Treasury yields failed to dampen demand for the safe-haven asset. EUR/USD benefited from the dollar's decline, advancing 0.5% to 1.0875, while Bitcoin also rallied 3.2% to $68,500, suggesting broad risk-on sentiment despite shutdown fears. Technical indicators show gold breaking above its previous resistance at $2,650, with momentum indicators suggesting further upside potential toward $2,700. Traders are positioning for continued dollar weakness if the shutdown materializes, which could push gold toward the psychological $2,700 level while supporting further gains in major currency pairs against the USD.