The U.S. government shutdown has lasted seven days without resolution, yet traders still expect the Federal Reserve to cut interest rates two more times this year.

ChainThink report, on October 7th, with the US government shutdown entering its seventh day and no sign of resolution, gold prices retreated slightly in early trading after approaching the $4,000 per ounce level. The US government shutdown has added uncertainty to financial markets, leading to delays in the release of key economic data that is crucial for the Federal Reserve's decisions. However, traders still expect the Federal Reserve to cut interest rates twice more this year.

At the same time, political turmoil in France and ongoing geopolitical risks continue to drive demand for safe-haven assets. Goldman Sachs raised its gold price forecast for December 2026 from $4,300 per ounce to $4,900 per ounce, citing factors including inflows into gold exchange-traded funds and central bank gold purchases. (Jinshi)