Gold Price approaches $4000/oz

The yellow metal continues to set new records every week this year on strong buying interest and positive momentum.

The ongoing rally is being driven by durable demand from both EM central banks and Western investors as well as the Fed rate cut outlook.

The recent gold’s price momentum has pushed the precious metal to an all-time high of $4,059/oz, moving above to the key psychological level of $4,000/oz.

The metal has gained 20% since late August and added over 52% since the beginning of the year so far, supported by safe-haven flows tied to political uncertainty in Japan, and France, geopolitical risk in Ukraine and Middle East, as well as concerns over US gov’t shutdown.

The mounting concerns over the prolonged U.S. government shutdown continued to reinforce sentiment, with traders rotating capital into safety assets like gold.

Adding to that, the bullish momentum was also supported by strong demand from some central banks from EM (emerging markets), amid their effort to “de-dollarize” their reserves with gold, especially from the People’s Bank of China, India, Turkey, Poland, and others.

Finally, the expectations of further Federal Reserve rate cuts have also buoyed the bullish sentiment for gold. Traders are expecting Fed to cut its rates by 100 basis points by mid-2026.

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