Gold Slides Below $3,850 as Dollar Rebounds Amid U.S. Government Shutdown

Gold (XAU/USD) eased from record highs as the U.S. Dollar recovered, reflecting ongoing market uncertainty. The precious metal briefly touched an all-time peak near $3,895 on Wednesday before retreating to around $3,820 during the American session. Investors are watching closely how safe-haven demand responds to the broader U.S. economic context.

The market remains focused on the U.S. government shutdown, which has disrupted economic data releases. Key reports, including the weekly Initial Jobless Claims and August Factory Orders scheduled for Thursday, are delayed. Additionally, the Nonfarm Payrolls (NFP) report planned for Friday is unlikely to be released due to the shutdown.Political developments have also shaped market sentiment. On Wednesday, the Senate blocked a stopgap funding measure, repeating Tuesday’s 55–45 outcome.

Earlier, on Monday, the Bureau of Labor Statistics (BLS) confirmed it would suspend operations during the shutdown. Meanwhile, Wednesday also saw the U.S. Supreme Court block President Trump’s bid to remove Fed Governor Lisa Cook immediately, leaving her in place until a full hearing in January. On the trade front, Trump had threatened last week to impose 100% tariffs on pharmaceutical imports starting Wednesday, though the administration later delayed the rollout.

Overall, the tug-of-war between gold and the dollar reflects broader market uncertainty: geopolitical tensions, Fed rate cut expectations, and the fragile U.S. growth outlook are pushing investors toward safe-haven assets like gold. Traders now weigh whether the recent consolidation is merely profit-taking or a pause before another upward leg.