Gold Prices Soar, Index Futures Fall Amid U.S. Federal Government 'Shutdown'

Gold Futures Surge to $3,900 at One Point
Shutdown Impact Expected to Be 'Limited'

As of 12:01 a.m. Eastern Time on October 1, the U.S. federal government entered a shutdown (temporary suspension of government operations), prompting mixed reactions in the financial markets. New York stock index futures showed weakness, while gold prices, after reaching an all-time high, reversed into a slight decline.

Reuters Yonhap News

According to CNBC, as of 3:56 p.m. Korea Standard Time on October 1, the spot price of gold was up 0.03% from the previous session, standing at $3,859.57 per ounce. At around 12:50 p.m. on the same day, as the shutdown loomed, gold prices soared to a record high of $3,875.53 per ounce before retreating slightly. December gold futures were also up 0.48% from the previous session at $3,891.70 per ounce at the same time, and for the first time during trading, surpassed the $3,900 mark.

New York stock futures were weak. S&P 500 futures fell by 0.75%, and Nasdaq 100 futures declined by 0.90%. The U.S. dollar also weakened, with the Dollar Index (DXY), which measures the dollar's value against six major currencies, dropping 0.3% from the previous session to 97.495.

Market experts believe the impact of the shutdown itself will be limited. Kyle Rodda, chief analyst at Capital.com, told Reuters, "Even during the shutdown that lasted more than a month in 2018-2019, the New York stock market actually rose." He added, "However, this time, the delayed release of September employment data and President Trump's threat to fire federal employees could shock the labor market."

On the previous day, September 30, the New York stock market closed higher for the third consecutive session despite concerns over the shutdown. The Dow Jones Industrial Average rose by 0.18%, the S&P 500 index by 0.41%, and the Nasdaq index by 0.30%. Analysts say that concerns about an economic slowdown due to the federal government shutdown have, in fact, heightened expectations for a Federal Reserve interest rate cut.

This U.S. government shutdown is the first in about seven years since the first Trump administration, which began in December 2018.

This content was produced with the assistance of AI translation services.