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06/10/25
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Gold Surges Past $3,900, Eyes $4,000 Amid US Political Uncertainty
Gold prices surged to a new all-time high early Monday, surpassing the $3,900 level for the first time. The precious metal rallied by approximately 1% during the session, reaching near $3,925, with markets now eyeing the $4,000 level. Despite a strengthening US dollar and global stock markets showing risk-on sentiment, demand for gold remains robust, primarily driven by ongoing concerns over the US government’s extended shutdown.
The deadlock in Washington has persisted into a seventh day, with no visible efforts from lawmakers to resolve the impasse. The political standoff has heightened fears of layoffs amid weakening U.S. labor conditions and increased economic uncertainty. Market participants are also awaiting key economic data and Federal Reserve communications, which will influence future interest rate decisions. Currently, markets have largely priced in a rate cut of 25 basis points later this month, with a high probability of a further reduction in December.
In the currency markets, the Japanese Yen declined against the US dollar following political developments in Japan, with focus turning to expectations of continued monetary easing by the Bank of Japan. These geopolitical and fiscal factors have contributed to a complex backdrop for investors, bolstering gold as a safe-haven asset.
Technical analysis indicates that gold’s momentum remains strong, with momentum indicators suggesting room for further gains. Should buying pressure persist, traders anticipate gold reaching toward $3,950 and potentially $4,000. Conversely, if market volatility prompts a correction, initial support levels are seen around $3,872, with deeper setbacks potentially testing $3,753. Overall, gold continues to be viewed as a vital hedge against inflation and currency depreciation, supported by central bank buying and global economic uncertainties.
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