&imwidth=800&imheight=600&format=webp&quality=medium "How the US government shutdown will affect gold, dollar, bond yield")
The United States government was officially shut down after a vote to extend the federal funding deadline failed. The US government shutdown has triggered fears in government employees of being left without pay in the absence of budget allocations. The move is expected to hurt global markets, gold prices, bond yields, and the US dollar.
How investors reacted to the US government shutdown
Gold
On Wednesday, gold prices witnessed the safe-haven effect as its international value climbed 0.1 per cent to $3,861.99 per ounce, as of 0359 GMT, reported Mint. The precious metal prices are witnessing an upsurge because the dollar has weakened. Investors are also anticipating US federal rate cuts in October and December.
Pressure on Dollar and Bond Yields
Anuj Gupta, Director at Ya Wealth, told Mint that the shutdown will put the US dollar and the US treasury under pressure. This can fuel demand for equity, gold, and mutual funds, he added. He said that gold and equities might gain internationally.
Trending Stories
)
HIMARS launched from Bahrain? US launches BIG attack on Iran after Hormuz closure, Hegseth says 'now they pay'
)
Fact Check: Viral photo shows Trump leaning in for a kiss with Brigitte Macron. Here is the full truth
)
World's first once-a-week insulin launched in India: Here's how much it costs
)
Man claims he travelled to year 3700. Robots had killed 30% of humans. Here is what else he says he saw
&im=FitAndFill=(700,400))
Why the F-22 cockpit is much smaller than you might expect
&im=FitAndFill=(700,400))
Why does the B-52 bomber still use eight engines?
)
Afghanistan’s top diplomat in Delhi seeks India’s help in water management, agriculture modernisation
&im=FitAndFill=(700,400))
Who is Linda Noskova? Meet the new Wimbledon 2026 women's singles champion
)
Sucked into another dimension? Rumours swirl physicist vanished while working on science of 'being in two places at once'
)
UK tells female soldiers to double their diet and sleep more to match male soldiers
&im=FitAndFill=(700,400))
Why the B-52 bomber is outliving newer bombers
)
18 women developed kidney problems in Nagpur. Medical probe found a common culprit
)
'I requested...': Trump taken to Walter Reed hospital amid Iran strikes? What we know
)
Can Trump really order Iran’s destruction if he is assassinated? Here’s what US law says
)
Why do Nepal students, who made him PM, want Balen Shah to resign | WION Decodes
&im=FitAndFill=(700,400))
Why Russian fighter jets leave exhaust pipes raw compared to US jets
)
Why England's equaliser vs Norway was so controversial: FIFA explains camera wire incident
&im=FitAndFill=(700,400))
How can the B-52 bomber carry so many different types of weapons?
)
Japanese researchers find invisible gold in massive quantities hiding beneath seafloor
)
₹2,000: The last of the pink notes face quiet exit as RBI confirms 98.5% of currency returned
)
Wimbledon 2026: Karolina Muchova's 'ex-friend' joke steals the show after final heartbreak
&im=FitAndFill=(700,400))
How does stealth actually work? The physics of B-2 bomber that radar simply cannot see
&im=FitAndFill=(700,400))
How many tires does a B-52 bomber have?
&im=FitAndFill=(700,400))
How much does a B-52 bomber cost?
&im=FitAndFill=(700,400))
Why are the B-52 bomber's tyres different from those on most aircraft?
)
Avengers-Doomsday: Marvel Studios unveils concept poster featuring Thor, Loki, Steve Rogers and more | Watch
)
US military withdraws stealth fighter jets from Israeli airbase even as tensions with Iran flare up again
)
195 kisses in 30 seconds: Brazilian couple sets unusual Guinness World Record
)
Russia-Ukraine war: Putin urges remote work after massive Ukrainian strikes
)
Was Lindsey Graham poisoned? Laura Loomer points finger at Russia and Iran
)
Tom Holland on why The Odyssey will be celebrated by Indians who crave larger-than-life cinema
&im=FitAndFill=(700,400))
7 engineering features that make the B-52 bomber so unique
)
US Senator Lindsey Graham, key Trump ally, dies after 'sudden illness'; Trump says 'will be greatly missed': Who was he
)
Afghanistan seeks Indian seeds and technology to boost farming and food security
&im=FitAndFill=(700,400))
From Odysseus to Athena: Who’s who in Christopher Nolan’s The Odyssey? Full cast guide
)
From 96% to 3 zeros: Professor suspected AI cheating in remote exam. What he did next exposed 57 of 59 students
Sandeep Pandey, co-founder of Basav Capital, said that investors may shift their money from the bond and currency markets to safe havens, such as equities and commodities. Gold and silver might be an option. Those willing to take risks will move towards cryptocurrencies.
According to the report, a prolonged shutdown may increase the prices of gold and silver further, as investors would want to park their money in safer options. In equities, short-term volatility is expected. However, some sectors may benefit if FIIs return to India
Bond yields are expected to remain under pressure internationally.
Meanwhile, former Vice President Kamala Harris said that US President Donald Trump and Republicans wanted higher healthcare costs, which caused the shutdown.
"President Trump and Congressional Republicans just shut down the government because they refused to stop your health care costs from rising. Let me be clear: Republicans are in charge of the White House, House, and Senate. This is their shutdown," she wrote on X.