Gold approaches $4,000 psychological mark amid safe-haven demand
Gold (XAU/USD) continues its historic climb, notching yet another all-time high near $3,985 on Tuesday. The precious metal’s advance reflects deepening market anxiety as investors seek refuge in safe-haven assets amid the prolonged United States (US) government shutdown and mounting expectations of further interest rate cuts by the Federal Reserve (Fed).
At the time of writing, XAU/USD is trading around $3,980, hovering just below its record highs during the American session. The pause suggests that near-term momentum may be easing, with traders turning cautious as the metal approaches the $4,000 psychological mark amid momentum indicators flagging risks of uptrend exhaustion.
A renewed strength in the US Dollar (USD) and rising Treasury yields could temper Gold’s advance. The Greenback’s gains come as political upheaval in Japan and France rattles currency and bond markets for a second day, prompting flows back into the USD and pushing yields higher, which in turn could act as a short-term headwind for Bullion.
In the wider context, investors continue to position for a more dovish Fed, with markets pricing in back-to-back rate cuts in October and December. The lower-rate outlook, alongside persistent geopolitical tensions and steady central bank buying, keeps the longer-term trajectory for Bullion tilted to the upside.
Source: Fxstreet
