Gold continues its climb, breaking $4,000 an ounce for the second time this week as uncertainty grows over the U.S. economy. Meanwhile, stock futures held steady Wednesday morning, with investors focused on upcoming Federal Reserve minutes for clues about the central bank’s next move.
Stock futures stabilize after tech sell-off
The Dow Jones, S&P 500, and Nasdaq 100 futures each edged up about 0.2% in early morning trading. This pause comes after all three indexes ended lower on Tuesday, ending a weeklong rally driven by AI optimism. Oracle’s disappointing cloud margins sparked fresh doubts about the sector’s near-term profitability.
- Dow Futures (YM=F): +0.13%
- S&P 500 Futures (ES=F): +0.13%
- Nasdaq 100 Futures (NQ=F): +0.17%
The market is now bracing for the Fed’s September meeting minutes, expected later today. With the ongoing government shutdown delaying critical data like the September jobs report, investors are hungry for insight into policymakers’ thinking.
Gold hits new all-time high: What’s driving it?
Gold futures hit $4,064.30 an ounce early Wednesday, after briefly topping the $4,000 mark on Tuesday. The rally has pushed gold up more than 50% in 2025—its strongest annual performance since 1979 according to goldeneaglecoin.com.
Key drivers behind the surge:
- Government shutdown: Now in its seventh day, the federal stoppage has increased economic uncertainty.
- Weaker U.S. dollar: Down over 9% year-to-date against a basket of currencies.
- Investor skepticism: Growing concerns over the U.S. government’s stability and monetary policy are pushing buyers toward gold as a safe-haven asset.
- Central bank buying: September saw record inflows into gold-backed ETFs, according to the World Gold Council.
- Speculation: As prices climb, traders continue piling in—amplifying momentum.
“People are reassessing what they view as safe,” said Ryan McIntyre of Sprott, noting a broader shift toward assets outside the traditional financial system.
Fed divisions and economic blind spots
The Federal Reserve remains split on whether to continue cutting rates. Stephen Miran, a new Trump appointee to the Fed, has advocated for as many as five additional cuts this year, citing declining immigration and shrinking deficit concerns. In contrast, Kansas City Fed President Jeff Schmid warned that lowering rates too aggressively could fuel inflation if companies pass on tariff costs to consumers.
The shutdown has complicated the Fed’s job—cutting off access to the very data that shapes monetary policy.
Investor takeaway
Gold’s rise amid a stable stock market is rare—and a potential warning sign. As Wall Street watches for Fed clarity and a resolution to the shutdown, gold remains the asset of choice for those bracing for economic fallout.
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