The yellow precious metal surged toward the US$4,000 mark on Tuesday, hitting a fresh record high of US$3,977 as safe-haven demand increased amid the ongoing US government shutdown, growing expectations for a Fed rate cut, and escalating global uncertainty.
Elsewhere, Bitcoin held near US$124,428 after hitting a record high of US$126,186, driven by strong U.S. spot ETF inflows and “debasement” trades amid the government shutdown.
The shutdown has delayed key data releases, such as US Non-Farm Payrolls, leaving traders to rely on softer private reports that show slowing growth and sticky inflation.
With another 25-basis-point Fed cut expected in October, lower yields continue to underpin bullion, which is now up nearly 50% this year, driven by Political turmoil, which further boosted gold’s appeal, with the resignation of French Prime Minister Sebastien Lecornu unsettling European markets, while in Washington, Trump warned mass federal layoffs could follow if talks fail to resolve the six-day shutdown.
With attention turning to Friday’s University of Michigan sentiment data, FOMC Minutes, and delayed US labour figures, traders remain cautious as gold edges closer to the US$4,000 milestone.
Technically, spot gold remains stretched but bullish: the RSI has returned to overbought territory, the MACD remains positive, and the ADX signals an overheated bull trend.
Support is seen at $3,942-46, while resistance is thin until $4,000. Reassess from there.
Daily Chart Spot Gold
