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Gold prices soared past $4,300 an ounce on Friday, setting another all-time high and heading for their strongest weekly performance in more than 17 years, amid the prospect of further Fed rate cuts, U.S. government shutdown, and renewed trade tensions between the U.S. and China.
Spot gold climbed 1% to $4,378, extending the weekly gains to nearly 10%, while U.S. gold futures for December delivery rose 1.7% to $4,390. In September 2008, gold surged more than 11% in a week as the global financial crisis triggered a flight to safety.
Thus, gold has extended its year-to-date gain to 66%, supported by strong ETF and central bank demand as well as rising uncertainties, marking its best year since 1979.
Silver also extended its rally, rising 0.3% to $54.41 per ounce and securing an 8.2% weekly gain. Since the beginning of the year, silver prices have increased by roughly 84%, supported by both industrial and investment demand.
Other precious metals diverged, with platinum slipping 0.7% to $1,717 and palladium down 0.5% to $1,655.
In Washington, a prolonged government shutdown entered its third week as the U.S. Senate failed for the tenth time to advance a Republican funding bill. The measure, which aimed to keep the government open until Nov. 21, fell short by a 51-45 vote—four votes below the required threshold to move forward.
The deadlock has left federal agencies partially closed, with essential employees working without pay and nonessential staff furloughed. The shutdown has also halted the publication of key economic data, clouding market visibility and heightening uncertainty.
However, investors have intensified their expectations of further Federal Reserve rate cuts in the coming meetings. According to CME Group’s FedWatch Tool, markets are fully pricing in at least a 25-basis-point reduction in both the October and December policy meetings.
During previous shutdowns, furloughed employees typically received back pay once the government reopened. President Trump, however, has threatened to fire thousands of workers and withhold back pay, prompting Democrats and labor unions to prepare legal challenges.
Meanwhile, China announced that it would "optimize" its recently tightened rare earth export controls, saying the measures are not aimed at any specific country. The statement came after U.S. President Donald Trump threatened to impose 100% tariffs in retaliation for Beijing’s export restrictions.
Chinese Commerce Ministry spokeswoman He Yongqian told reporters that the new rules require companies using Chinese rare earth materials or technology outside China to obtain export licenses from the Ministry of Commerce. She added that the ministry plans to shorten review times and facilitate legitimate trade.
In a related development, Chinese Commerce Minister Wang Wentao met with Apple CEO Tim Cook in Beijing on Thursday to discuss bilateral trade ties and Apple’s operations in China. Wang said the U.S. trade measures have "severely harmed" China’s interests and called for issues to be addressed through "equal dialogue and consultation."
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