"Meanwhile, gold prices have skyrocketed in response to the shutdown, reaching an all-time high early Wednesday morning that neared $4,000. Just after the day's 12:01 a.m ET shutdown, spot gold reached over $3,894, while U.S. gold futures hit $3,922. Both have since dropped slightly, but remained at significant highs at the time of publishing. Gold prices have risen significantly this year amid increasing economic uncertainty and a weaker dollar. As of early Wednesday, they were up roughly 46% year to date."
"Historically speaking, a typical government shutdown shouldn't have a lasting impact on the economy, experts point out. "Government shutdowns tend to be high profile though low-impact market events," according to a report last week from financial company Truist. "In the previous 20 shutdowns, there has been almost no change, on average, for the S&P 500, while it has been in positive territory 50% of the time during the shutdown period."
U.S. federal government shut down at 12:01 a.m. ET on October 1, creating uncertainty about jobs and the economy. Early market moves showed modest losses: Dow down 0.41%, S&P 500 down 0.45%, Nasdaq down 0.50%, and futures dipped but not sharply. Gold spiked to near $4,000, with spot exceeding $3,894 and U.S. futures hitting $3,922 before easing slightly; gold is up roughly 46% year-to-date amid economic uncertainty and a weaker dollar. Bitcoin and other cryptocurrencies rose as investors sought safe-haven assets. Historical precedent suggests limited economic impact unless the shutdown is prolonged.
Read at Fast Company
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