Gold prices continue to climb, with international gold prices breaking the $3,900 per ounce mark for the first time in Asian early trading on Monday (October 6), reaching a historic high.
At 7:53 a.m. on October 6, Asian time, spot gold rose by 0.6% to $3,910.09 per ounce. December gold futures in the U.S. rose by 0.7% to $3,935 per ounce.
The Bloomberg Dollar Spot Index rose by 0.3%, and silver, platinum, and palladium prices also rose in sync.
Analysts point out that this upward trend is primarily driven by two main factors: firstly, the safe-haven demand sparked by the U.S. government shutdown, and secondly, market expectations of further interest rate cuts by the Federal Reserve (Fed).
The U.S. government shutdown resulted in a delay in the release of employment data scheduled for last Friday (October 3), further increasing uncertainty about the economic outlook. Gold closed the day with a seventh consecutive week of gains.
Investors’ concerns about global economic uncertainty, geopolitical risks, and the direction of U.S. government policies have made gold the preferred safe-haven asset, leading to simultaneous increases in spot gold prices and gold futures. International gold prices have risen by about 47% so far this year.
According to forecasts from HSBC, gold prices are expected to surpass $4,000 per ounce in the short term, mainly due to factors such as geopolitical risks, fiscal uncertainty, and threats to the Fed’s independence.
Analysis indicates that with continued gold purchases by central banks worldwide and investment demand supported by official institutions such as treasury departments, gold prices are likely to continue rising until 2026. However, as the Fed’s interest rate cutting cycle ends, demand for physical gold (such as gold bars, coins, jewelry, etc.) weakens, and supply increases, gold prices may fall in the second half of the year.
(This article is based on reports from Bloomberg and Reuters)