How a U.S. Government Shutdown Could Affect Gold and the Dollar

[Arman Shaban]

With growing concerns over a potential U.S. government shutdown, traders are watching the markets closely.

Historically, shutdowns have led to increased uncertainty, which often supports gold prices as investors seek safety. During past shutdowns (like in 2013 and 2018), gold showed consistent upward movement.

At the same time, the U.S. dollar tends to weaken — especially if key economic data like CPI or NFP gets delayed and confidence in fiscal policy starts to fade. A prolonged shutdown could further pressure the dollar, while gold may benefit from risk-off sentiment and reduced clarity around Fed decisions.

For now, gold remains a hedge against political instability — and this event could be a major catalyst to watch.

Prepared by: Arman Shaban

[Pitchfork_IS_power]

Great insight Historically every U.S. shutdown has fueled uncertainty, pushing gold higher as a safe haven If this drags on, the dollar weakens further and gold could see another strong leg up