(MENAFN) The value of gold soared by more than 1.4% on Wednesday, reaching an unprecedented peak of $4,040.32 as of 0835GMT.

This milestone comes amid growing anxiety caused by the ongoing U.S. federal government shutdown and increased speculation that the Federal Reserve will introduce further interest rate reductions in its upcoming session.

Throughout the past year, gold prices fluctuated between $2,536.91 and $4,040.32, with the overall value appreciating by 54% during that period.

This notable rise reflects investors' growing preference for safe-haven assets amid deepening political and economic unpredictability.

The shutdown of the U.S. federal government has now extended into its seventh day, with no compromise in sight.

Senate Democrats have once again opposed a Republican-led measure aimed at prolonging government funding until November 21, intensifying the current political standoff.

Although a shutdown does not necessarily trigger a complete economic breakdown, it significantly disrupts numerous aspects of life in the United States and further clouds the outlook for the world's largest economy.

Countless government employees face the prospect of either being furloughed or continuing to work without pay, while others will be placed on mandatory unpaid leave until a new fiscal plan is enacted.

Each federal department has its own strategy to manage the shutdown, outlining which personnel are considered vital and will remain active during the funding lapse.

Furthermore, the shutdown will interrupt the release of essential economic data. According to the Bureau of Labor Statistics’ “emergency plan,” key indicators such as "non-farm payrolls," "initial jobless claims," and "inflation figures" will not be published during the shutdown.

This lack of data could hinder analysts and policymakers in assessing the real-time condition of the economy.

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