Gold Soars, Focus on the Fed & Shutdown
Gold prices surged to $3,800 per troy ounce ahead of the European session opening on Monday (September 29, 2025). This increase extended gold's strengthening trend in recent weeks, as expectations grew that the Federal Reserve would soon cut its benchmark interest rate.
Dovish sentiment from the Fed has intensified due to market concerns about a potential government shutdown in the US. This shutdown is feared to hinder the release of important economic data, including the jobs report, which is the central bank's main reference. Without data, the direction of monetary policy becomes increasingly uncertain—driving investors to seek safe-haven assets like gold.
At the same time, the US dollar weakened against a number of major currencies, supporting the rise in gold prices. A weaker dollar makes gold cheaper for foreign buyers, thus boosting demand. US bond yields have also moved lower, giving gold more room to rise.
Technically, gold is now in a key area and has the potential to test new resistance levels if the Fed's dovish sentiment persists. Market participants are now awaiting further signals from Fed officials and further data releases this week, if the shutdown is not delayed. For now, gold remains a favorite amid global uncertainty. (ads)
Source: Newsmaker.id
