Gold’s appeal often grows when confidence in government policy fades or the economy slows. Many investors are concerned that federal debt is rising too fast and that the Federal Reserve’s interest rate cut last month could further stoke inflation. When prices keep going up, cash loses value, and gold—long seen as a dependable store of worth—looks safer. Gold’s climb also highlights why some investors turn to alternative assets, which don’t always move in step with stocks or bonds, to add diversification to a traditional portfolio.

Economists call the current rush toward gold a “flight to quality.” The phrase describes how investors, during volatile times, move their money out of riskier or less-trusted assets and into those they believe are safer, such as U.S. Treasury bonds, or hold dollars. But this time, both have lost some appeal. Political gridlock, large budget deficits, and the ongoing shutdown have weakened confidence in government-backed investments. As a result, investors are turning to gold and even cryptocurrencies (Bitcoin also hit a new all-time high this week) as alternatives, because they see such assets as a hedge against policy uncertainty.

The government shutdown has also delayed the release of September’s Consumer Price Index, which determines the annual cost-of-living increase for Social Security recipients. Until that data is published, nearly 70 million beneficiaries must wait to learn whether their monthly payment will rise next year and by how much. It’s yet another example of how political gridlock can ripple through the economy and affect everyday lives.