Gold prices climbed above $3,800 an ounce on Monday as safe-haven demand intensified on the back of a weaker U.S. dollar and growing concerns over a potential government shutdown in Washington.
Bullion rose as much as 1.4 percent to an unprecedented $3,812.05 an ounce, surpassing last Tuesday’s peak.
The rally marks six consecutive weekly gains, with prices up 45 percent so far this year. As of 1:50 p.m. in Singapore, spot gold was trading 1.2 percent higher at $3,806.23 an ounce.
Silver also extended gains, rising as much as 2.4 percent to touch its highest level since 2011, while platinum and palladium climbed strongly, supported by persistent market tightness and inflows into exchange-traded funds backed by precious metals.
The Bloomberg Dollar Spot Index slipped 0.2 percent as investors awaited the outcome of a scheduled meeting between U.S. congressional leaders and President Donald Trump.
The meeting comes a day before federal funding is set to expire, raising the risk of a shutdown that could delay the release of key economic data, including Friday’s payrolls report.
A weaker greenback makes commodities such as gold cheaper for holders of other currencies, boosting demand.
A shutdown and subdued jobs data could strengthen the case for the Federal Reserve to ease monetary policy at its October rate-setting meeting. Market expectations for further rate cuts are lifting gold’s appeal as a non-interest-bearing asset.
Still, Fed officials remain divided on the pace of easing. Some policymakers have signaled support for additional cuts, while others pointed to stronger-than-expected data that could justify caution.
Analysts at Barclays Plc said bullion continues to look attractive compared with the dollar and U.S. Treasuries, noting that this makes it a surprisingly good value hedge given the risks from the central bank’s potential loss of independence.
Silver climbed 1.5 percent to $46.78 an ounce after breaking above $45 last week for the first time in 14 years. Platinum jumped 2.6 percent, trading above $1,600 an ounce for the first time since 2013, while palladium rose 2.9 percent to its highest level since July.
The broad-based rally has been supported by strong inflows into metals-backed ETFs and tightening supply in global markets. Lease rates for silver, platinum, and palladium have spiked well above historical averages, signaling dwindling freely available stockpiles.
Gold is on course for a third consecutive quarterly gain, with institutional demand and central-bank buying providing structural support.
Banks including Goldman Sachs and Deutsche Bank have forecast that bullion’s rally will extend, citing Fed rate cuts, geopolitical risks, and ongoing currency weakness as key drivers.
With U.S. fiscal negotiations hanging in the balance and monetary policy uncertainty persisting, gold’s role as a safe-haven hedge appears firmly entrenched, keeping upward pressure on prices as investors navigate heightened global risks.