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08/10/25
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Gold Surges Past $4,000 as Safe-Haven Amid Global Unrest and Fed Easing Expectations
Gold continues to demonstrate an extraordinary rally, surpassing the historic $4,000 level for the first time in its long-standing upward trajectory. The surge reflects mounting global economic and political tensions, prompting increased investment in safe-haven assets. As of recent trading, momentum indicates that the rally remains unbroken, although technical indicators suggest prices are approaching an overbought condition on daily charts, raising the possibility of a short-term pullback.
Despite the uncertainty, market sentiment has adopted a “buy everything” approach, supported by expectations of Federal Reserve easing measures amid widespread apprehensions about an economic slowdown. The rally in gold has been especially pronounced this year, gaining roughly 50%, driven by concerns over potential U.S. government layoffs amid the ongoing shutdown, which has extended into its second week. While initial plans for immediate layoffs have been delayed, the threat of mass employment reductions remains a factor contributing to the precious metal’s attractiveness as a safe-haven investment.
The U.S. government shutdown, coupled with postponed economic data releases, has increased speculation that the Federal Reserve might implement up to two interest rate cuts later this year. Market expectations now reflect a 95% probability of such cuts being announced at the end of October. This dovish outlook further bolsters demand for both the U.S. dollar and gold, especially amidst ongoing political unrest in France and Japan. Additionally, sustained gold purchases by central banks around the globe continue to reinforce bullish sentiment for the yellow metal.
Looking forward, market participants await speeches from Federal Reserve officials for further insights into the U.S. economic outlook and future monetary policy moves. Technically, gold faces the risk of a significant correction if momentum falters. Should the price fail to sustain a weekly close above $4,000, immediate support levels around $3,950 and $3,884 may come under pressure, with critical support near the October 2 low of approximately $3,820. Conversely, a sustained break above $4,000 could open pathways toward psychological targets at $4,050 and $4,100.
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