Gold reaches a record $3999: what is pushing prices up.

According to inkorr.com: Gold prices have reached a record level of $3999 per ounce amid the U.S. government shutdown and expectations of a decrease in the Federal Reserve's key rate. This was reported by Reuters.

Reasons for the rise in gold prices

As of October 7, the spot price of gold is about $3965 per ounce, after reaching $3977 at the beginning of trading. December futures also remain high at $3999. The main factor is the prolonged U.S. government shutdown, which blocks the budget and important economic reports. Investors are concerned about uncertainty, with an 80% probability of a quarter-point rate cut in the coming months.

“Strong demand for gold ETFs is supported by the fear of missing a good deal and a lack of trust in traditional 'safe' assets. In addition, central banks are actively buying gold, and low rates reduce the cost of holding it,” says Ole Hansen, head of commodity strategy at Saxo Bank.

Traders during the shutdown are forced to rely on private estimates as there are currently no official data. The White House is trying to reassure the public, stating that mass layoffs in government services will not happen yet, but the risks of job losses are increasing.

Is it worth investing in gold now?

Experts are confident that it's not too late to invest in gold as the trend for its growth is just beginning.

“The probability of a rate cut in October and December exceeds 80%, which supports gold prices. The government shutdown only increases the demand for 'safe haven',” explains OANDA analyst Kelvin Wong.

Since the beginning of 2025, gold has risen by 51%, and forecasts indicate further growth.

Factors influencing the rise in gold prices

Here are some key reasons contributing to the rise in gold prices:

• Budget deadlock in the U.S. Congress creating uncertainty and panic;
• Expectations of a rate cut by the Fed, as low rates are favorable for gold;
• Active purchases by central banks and increased investment in gold ETFs;
• Global risks such as conflicts in the Middle East and trade disputes.

According to the latest forecast from Goldman Sachs, by December 2026 the price of gold could reach $4900 per ounce, which is $600 higher than previous forecasts. J.P. Morgan also notes that the price could reach $3675 by the end of 2025 and $4000 by mid-2026. For Ukrainians, this means that investments in gold could be a better solution compared to holding hryvnias.