Gold Surges to $4,140 Amid Fed Rate Cut Speculation and Government Shutdown Resolution
Gold prices soared to $4,140 per ounce, marking a 2.9% daily gain—the largest since May—as markets priced in potential Federal Reserve rate cuts. The rally coincided with a bipartisan deal to end the 40-day U.S. government shutdown, which had stalled critical economic data releases. Soft October jobs figures and waning consumer sentiment now imply a 64% chance of a December rate cut, escalating to 77% by January.
President Trump’s push for $2,000 stimulus checks has intensified inflation concerns, further bolstering gold’s appeal as a hedge against currency devaluation. The metal has surged 55% year-to-date, on pace for its strongest annual performance since 1979. Goldman Sachs projects a climb to $4,900 by Q4 2026, citing sustained macroeconomic uncertainty.
