Gold prices reached nearly $4000: is it too late to invest?

Gold prices have skyrocketed to a record $3999 per ounce amid the U.S. government shutdown and bets on a reduction in the Fed's key rate. This is reported by Reuters.

Why gold prices have soared to the moon

Today, October 7, the spot price of gold is holding around $3965 per ounce, after reaching a peak of $3977 at the start of trading. December futures are also stable at high levels, $3999. Why is this happening? The main driver is the U.S. government shutdown, which for the seventh day blocks the budget and key economic reports. Investors are in a panic, as they don’t know when the Federal Reserve will lower rates—the market puts an 80% probability on a quarter-point cut already in October and December.

"Strong demand for gold ETFs is sustained by FOMO—the fear of missing out on a good deal—and the loss of trust in traditional 'safe' assets. Plus, central banks are buying metal, and low rates make it cheaper to hold," says Ole Hansen, head of commodity strategy at Saxo Bank. 

The shutdown forces traders to guess based on coffee grounds, as there are no official data—only private estimates. The White House has calmed things a bit: there will not be mass layoffs of civil servants yet, but the risk of job losses is growing, adding fuel to the fire.

Is it too late to invest in gold now when prices are sky-high 

Experts say no, because the trend is just gaining momentum. 

"The likelihood of a rate cut in October and December exceeds 80%, and this supports gold prices. Moreover, the government shutdown only boosts demand for 'safe havens'", explains OANDA analyst Kelvin Wong. 

Since the beginning of 2025, gold has already risen by 51%, but forecasts are even better.

Reasons for the rise in gold prices

Here’s what is driving gold higher now:

• The budget deadlock in the U.S. Congress, which blocks data and sows panic;

• Hopes for a Fed rate cut—gold loves cheap money;

• Mass purchases by central banks and inflow into gold funds (ETFs);

• Global risks: from wars in the Middle East to trade disputes.

The latest forecast from Goldman Sachs: by December 2026, the price could reach $4900 per ounce—$600 higher than they previously thought. J.P. Morgan sees $3675 by the end of 2025 and $4000 by mid-2026. For Ukrainians, this means: if you keep hryvnias under the mattress, gold may be a better choice. 

Earlier we wrote, how much it costs to buy a gold ingot in Ukraine.