How the US Government Shutdown affects Gold Prices

The US government shutdown, which began in early November 2025 and disrupted federal operations, could end very soon. Amid this uncertainty, gold prices climbed to a near three-week high on November 11, reflecting renewed investor interest in safe-haven assets. Spot gold reached $4,142.60 per ounce, its highest since October 23, while December gold futures rose 0.7% to $4,149.20, meanwhile in India, 24‑karat gold was trading around ₹1,25,570 per 10 g, reflecting a sharp domestic jump, making gold unaffordable for many in 2025 due to its high price. The price of silver is around ₹160 per gram and ₹1,60,000 per kilogram, reflecting the impact of global price movements and a weaker rupee value.

Gold prices are rising as markets expect the US government to reopen soon, which could restart the release of economic data influencing Federal Reserve policy decisions. Traders believe there’s over 50% chance the Federal Reserve will cut interest rates in December, a move that could lower borrowing costs and non-yielding assets like gold more attractive to investors. Amid market turbulence, China and India continue to stockpile gold, boosting their gold reserves to protect their economies.

Growing U.S. fiscal worries may boost demand for gold, especially if government borrowing increases after the shutdown ends. Recent economic data has also pointed to slowing momentum, with job losses and weaker consumer confidence in early November, prompting more investors to view gold as a reliable hedge against uncertainty.

Silver, platinum, and palladium (chemical element) also experienced gains, with spot silver rising 0.9% to $50.98 per ounce, platinum up 0.8% at $1,590.45, and palladium climbing 2.1% to $1,444.77. Experts stay positive on these metals as market uncertainty continues and it’s not very clear what the trend of gold price will be and many investors also don’t want to miss potential profits.

This recent trend shows how fiscal policy expectations and monetary decisions continue to shape demand for gold and other precious metals, revealing how investors react during uncertain economic times. Overall, gold’s rise during the U.S. government shutdown clearly indicates how quickly investors turn to safe assets when financial uncertainty grows.