The U.S. government has been in a shutdown for seven days without resolution, and traders still expect the Fed to cut interest rates two more times this year.

On October 7, amid the backdrop of the U.S. government shutdown entering its seventh day with no signs of resolution, gold prices slightly retreated in early trading after approaching the $4,000 per ounce mark. The government shutdown has added uncertainty to the financial markets, leading to a delay in the release of crucial U.S. economic data that is vital for Fed decisions. However, traders still expect the Fed to cut interest rates two more times this year. Meanwhile, political turmoil in France and ongoing geopolitical risks continue to boost demand for safe-haven assets. Goldman Sachs raised its price forecast for gold in December 2026 from a previous $4,300 per ounce to $4,900, citing inflows into gold exchange-traded funds and central bank gold purchases. ( Jin10 )