Markets Rally, Dollar Weakens & Gold Hits Record High — US Shutdown Looms

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Global financial markets are on the move today as investors weigh the growing possibility of a U.S. government shutdown. While equities rally and the dollar slides, gold is roaring to new highs, reflecting mounting concerns over liquidity, risk, and the shifting balance between fiscal uncertainty and safe havens. Here's what to know.

Markets Up, Dollar Down

Stock indices across the world are showing gains: the MSCI All-World Index is up ~0.16%, and Europe’s STOXX 600 has climbed about 0.3%. Meanwhile, the U.S. dollar has weakened against major currencies as investors reprice risk and seek alternatives. Amid the uncertainty, markets are forecasting a ~90% probability of a Fed rate cut in October. :contentReference[oaicite:0]{index=0}

Gold at Record Highs

Gold surged to an all-time high of $3,819.59 per ounce, as traders shift capital into traditional safe assets. The metal is benefiting both from the declining dollar and increased demand as a hedge against economic and geopolitical uncertainty. :contentReference[oaicite:1]{index=1}

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Shutdown Risks & Tariff Timeline

President Trump is set to meet congressional leaders to negotiate a funding extension. Without a deal, the U.S. government could shut down by Wednesday, coinciding with new tariffs on heavy trucks, patented drugs, and other goods scheduled to take effect. Analysts warn that a prolonged shutdown could complicate the Federal Reserve’s planned October 29 meeting and disrupt key economic data releases. :contentReference[oaicite:2]{index=2}

Why This Matters

• Policy paralysis: A shutdown would stall key government functions and delay data needed for monetary policy.
• Market volatility: Uncertainty raises the risk premium, which benefits gold and other safe havens at the expense of risk assets.
• Global spillovers: Emerging markets, commodity exporters, and debt markets could all feel pressure if U.S. funding and demand falter.

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Islamic Reflection

In times of financial flux, Islam teaches prudence, stewardship, and fairness. We are reminded to diversify responsibly, avoid excessive risk, and support those who suffer in economic turbulence. The Prophet ﷺ emphasized that wealth is a trust; we must manage it wisely, especially during uncertainty.

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Sources

• Stocks rise, dollar dips and gold roars higher as investors eye U.S. shutdown risk :contentReference[oaicite:3]{index=3}