Gold price rallied during the North American session and reached a record high of $3,991, before settling closer to $3,982 for a 0.60% gain. Uncertainty about the US government shutdown and expectations of lower interest rates the Federal Reserve (Fed) keep the yellow metal bid.

Bullion hits fresh record highs on US fiscal gridlock, geopolitical uncertainty and central bank demand
The New York Fed revealed the Survey of Consumer Expectations (SCE) showed that inflation expectations ticked higher, while the labor market continued to deteriorate.

Aside from this, Fed officials crossed the wires. The Minneapolis Fed's Neel Kashkari was moderately hawkish, saying that it is too soon to know if inflation will be sticky from tariffs. Earlier, Fed Governor Stephen Miran noted that growth in the first half of this year was slower than expected and that policy should be forward looking, given the lags of policy impact.

Alongside the reasons mentioned above, Bullion is also underpinned by the Russia-Ukraine war and political uncertainty in France and Japan.

Goldman Sachs revised their 2026 forecast for Gold prices from $4,300 to $4,900, citing strong flows into Gold ETFs and central bank demand. The People's Bank of China (PBoC) added Bullion to its reserves in September for the eleventh straight month.

Source: Fxstreet