Gold reapproached the psychological $4,000/oz level on Wednesday (October 8th), extending the safe-haven rally. Spot prices briefly touched an intraday record around $3.99,000, while the most-active December New York contract—the most active—returned above $4,000. Pressure on technology stocks following news of lower-than-expected Oracle cloud margins contributed to a rotation into gold amid the protracted US government shutdown.

The shutdown delayed key data releases, further clouding the Fed's interest rate cut; market participants relied on official commentary and hedged in the bond market. On the inflow side, global gold ETFs recorded their largest monthly outflow in September and their strongest quarter on record, adding fuel to the rally. Goldman Sachs also raised its December 2026 gold price from $4,300 to $4,900/oz, citing Western ETF flows and central bank buying.

However, the path to a net $4,000 is not without obstacles. A strengthening dollar coupled with political turmoil in France and Japan often dampens gold prices, as flows back into the USD and rising yields create a short-term headwind for bullion. However, the combination of expectations for further interest rate cuts, political scrutiny, and central bank buying maintains a medium-term bullish bias.

Finally, spot gold prices remain near record highs; futures are trading positive after breaking through $4,000 for the first time. In other precious metals markets, silver is trending slightly higher after the previous day's correction, while platinum is relatively flat and palladium is gaining. (asd)

Source: Newsmaker.id