Nearing $4,000, Gold Hits New Highs?
Gold hit a new record on Tuesday as the US Congressional deadlock showed no signs of ending and the market was almost certain to price in an interest rate cut this month. Spot gold rose 0.4% to $3,974.09/oz at 04:46 GMT—near the intraday record of $3,977.19—while December futures rose 0.5% to $3,996.40. According to Kelvin Wong (OANDA), the chance of an October-December rate cut remains above 80%, and the protracted shutdown is also supporting gold's rally.
Although Kansas City Fed President Jeff Schmid emphasized that the Fed's focus remains on the risk of inflation becoming "too high," the market is still pricing in 25 bps cuts in October (≈93%) and December (≈82%) according to CME FedWatch. Simply put: non-yielding gold typically shines when interest rates are low and economic uncertainty is high—a combination that currently dominates.
Year-to-date, gold has surged approximately 51%, supported by central bank buying, gold-backed ETF inflows, a weakening dollar, and retail investor hedging interest amid trade-geopolitical tensions. Goldman Sachs even raised its December 2026 gold price projection from $4,300 to $4,900/oz, in line with Western ETF inflows and central bank buying (the People's Bank of China added gold for the 11th consecutive month in September). In other commodities, silver held steady at $48.52/oz, platinum rose to $1,626.55, and palladium to $1,330.91. (az)
Source: Newsmaker.id
