US shutdown, Oct. 1 -- The United States is facing a government shutdown as lawmakers have failed to agree on an extension of federal funding, triggering fears of a prolonged standoff that could leave thousands of federal employees without pay. The uncertainty has rippled across global markets, impacting gold, bond yields, the US dollar, and equities - raising pressing questions about how Indian investors should position themselves.

Gold prices rallied to record levels on Wednesday as investors rushed to safe-haven assets amid the shutdown crisis. Spot gold climbed 0.1 per cent to $3,861.99 per ounce, as of 0359 GMT, after touching a lifetime high of $3,875.32 earlier in the session.

The metal is gaining from both global uncertainty and...