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Indonesia News Portal for Traders | Financial & Business Updates

8 October 2025 09:07  |

Gold Rally Unabated!

Wednesday, October 8, 2025 Spot gold prices surpassed $4,000/oz for the first time (an intraday peak of around $4,001), marking a significant jump from levels below $2,000 two years ago. This rally was fueled by the prolonged US government shutdown and concerns about the direction of the economy, prompting investors to seek safe havens. Year-to-date, gold has risen more than 50%, supported by geopolitical tensions, persistently high central bank buying, and inflows into gold ETFs—September was the strongest in more than three years.

Market participants also believe the start of the Fed's interest rate cut cycle has weakened real yields, facilitating the rise in non-interest-paying gold. At the same time, some believe AI-themed technology stocks are starting to appear "expensive," prompting a portfolio rotation from equities to gold. In short: the combination of shutdowns, the prospect of rate cuts, and investor rebalancing is keeping gold's bullish momentum alive near the psychological $4,000 level. (asd)

Source: Newsmaker.id

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