The yellow precious remains firmly in bull territory after breaking the historic $4,000 mark, with traders continuing to pile into the metal as political instability and US central bank caution fuel safe-haven demand.
Spot Gold demand is expected to continue as investors digest dovish Federal Reserve minutes, which showed a “substantial majority” of policymakers leaning toward further rate cuts this year — though some warned against moving too fast while inflation remains sticky.
The US Dollar Index slipped after three days of gains, reflecting a mild retreat in risk aversion as markets await clarity on the Fed’s path.
However, the ongoing US government shutdown — now stretching beyond a week — has delayed key data releases, including the all-important jobs and inflation figures.
This leaves the central bank effectively flying blind as it heads into its next policy meeting, reinforcing gold’s appeal as a hedge against uncertainty.
Year to date, bullion has surged more than 50%, its strongest run since 1979, underpinned by falling yields, a softer dollar, and record central-bank and ETF buying.
For now, momentum favours the upside even though the technical layout remains stretched but bullish: the RSI holds near overbought territory, the MACD remains positive, and the ADX signals an overheated bull trend.
Any sustained move above $4,042 could open the path toward $4,050, while support rests near $4,005-09 — where fresh demand is likely waiting to step back in.
Daily Chart Spot Gold
