NextFin news, Gold prices continued their upward trajectory for the seventh consecutive week on Saturday, October 4, 2025, driven by uncertainty surrounding the ongoing US government shutdown and growing speculation that the US Federal Reserve may cut interest rates soon. Market analysts attribute the rally to increased investor demand for safe-haven assets amid economic and political instability in the United States.
The US government shutdown, which began earlier this month, has delayed the release of critical economic data and heightened concerns about the health of the US economy. This uncertainty has led investors to seek refuge in gold, traditionally viewed as a stable store of value during times of crisis.
Adding to the bullish sentiment, recent labor market indicators have weakened, fueling expectations that the Federal Reserve might lower interest rates to support economic growth. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors.
According to market sources, gold prices closed at ₹1,18,100 per 10 grams in India, reflecting the global trend of rising gold prices. This marks a significant increase compared to previous weeks and underscores the metal's appeal amid ongoing geopolitical and economic uncertainties.
Experts caution, however, that the rally's continuation will depend on how the US government shutdown resolves and whether the Federal Reserve follows through with a rate cut. Any positive developments in these areas could temper gold's appeal, while prolonged uncertainty may sustain or even accelerate the rally.
In summary, the combination of the US government shutdown and speculation about a Fed rate cut has created a favorable environment for gold prices, pushing them higher for seven weeks in a row as of early October 2025.
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