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Gold Nears Record Highs on U.S. Uncertainty and Fed Rate Cut Expectations
Gold prices surged this week, climbing close to 3,900 dollars per ounce and heading for their strongest monthly performance in more than 14 years.
The rally has been fueled by rising political uncertainty in the United States over the risk of a government shutdown, alongside growing expectations of additional interest rate cuts by the Federal Reserve. This combination has boosted the metal’s appeal as a traditional safe-haven asset.
Political Deadlock and Monetary Pressure
Talks between the U.S. administration and Congress have stalled, raising concerns of a potential shutdown that could disrupt public services. At the same time, recent economic data signaled weakness in several sectors, reinforcing expectations of further monetary easing from the Federal Reserve in upcoming meetings.
Market Outlook – Point Trader Group
According to analysts at Point Trader Group, momentum remains strongly in favor of gold. With geopolitical tensions elevated and the U.S. dollar under pressure, the market now sees 4,000 dollars per ounce as a realistic year-end target.
Investor Demand Rising
Gold has historically thrived in low-interest-rate environments. Investor sentiment remains strong, with holdings in gold-backed exchange-traded funds climbing to their highest levels since 2022, reflecting growing institutional confidence in the uptrend.
Market Performance
Gold futures for December delivery rose 1.2% to settle at 3,855 dollars per ounce.
Spot gold climbed near 3,867 dollars, marking monthly gains of more than 12%, the strongest since August 2011.
Meanwhile, the U.S. dollar index slipped 0.1%, further supporting demand for bullion.
Other Precious Metals
Silver advanced to 47 dollars per ounce, up 18.6% since the start of the month.
Platinum and palladium edged lower amid supply pressures.
With key U.S. data ahead, including non-farm payrolls and the ISM manufacturing index, global investors continue to look to gold as a barometer of confidence in times of political and economic uncertainty.
