Gold prices reached record highs once again on Tuesday thanks to investor interest driven by geopolitical and economic uncertainties. Furthermore, expectations are that the US will implement further interest rate cuts.
The spot gold price stabilized at $3,957.60/ounce at 09:53 GMT after reaching a peak of $3,977.19/ounce during the session.
US December gold futures contracts traded around $3,980.10.According to Ole Hansen, head of commodity strategy at Saxo Bank, strong demand for ETFs, the “FOMO” effect, and decreased confidence in traditional safe havens are playing a significant role in the rise of gold. Central bank purchases and low financing costs are also among the other factors supporting gold.
The White House softened its statements regarding government layoffs but warned that job losses could occur due to the ongoing shutdown.
This lockdown disrupted the release of economic indicators and made markets more dependent on interest rate decision expectations. [Package Name] [Markets are pricing in expectations of a 25 basis point interest rate cut each month and in December. Gold, which does not provide interest, stands out in low-interest rate environments and periods of economic uncertainty.] [Package Name] [Package Name] [Gold has increased by approximately 51% this year.] During the same period, central bank purchases, increased demand for gold-backed ETFs, a weakening dollar, and individual investor interest drove prices higher.Michael Langford, investment director at Scorpion Minerals, predicts that gold could reach $4,300/ounce in the next six months as the USD continues to depreciate. Goldman Sachs, meanwhile, revised its gold target upwards to $4,900/ounce for December 2026.
Furthermore, the People’s Bank of China added to its gold reserves for the 11th consecutive month.
Political turmoil in Japan and France also affected the money and bond markets. Spot silver fell 0.4% to $48.32/ounce, platinum fell 0.7% to $1,613.81, and palladium rose 0.3% to $1,323.43/ounce. Spot silver fell 0.4% to $48.32/ounce, platinum fell 0.7% to $1,613.81, and palladium rose 0.3% to $1,323.43/ounce.
