Gold Price Rises By Over $100 In A Day Reaching $4,200
Gold prices surged past $4,200 an ounce for the first time on Wednesday, extending a powerful rally driven by expectations of US interest rate cuts and mounting geopolitical tension that has boosted demand for the safe-haven asset.
Spot gold climbed 1.6% to $4,209.49 per ounce as of 08:29 GMT, after hitting a record $4,217.95 earlier in the session. December futures in the United States rose 1.5% to $4,227.60. The metal has gained nearly 60% so far this year, propelled by economic instability, central bank buying, a weakening dollar, and strong inflows into gold-backed exchange-traded funds.
Just yesterday, on October 14 at 11:29 a.m. GMT+5, the price of a troy ounce of gold stood at $4,100, reflecting a 0.17% increase.
Investors Turn to Safe Havens as Global Tensions Rise
«Prolongation of the US government shutdown, more dovish comments from Fed officials, and the continued escalation of trade tensions between the US and China are likely to support further gains in gold prices,» said ActivTrades analyst Ricardo Evangelista. He added that reaching $5,000 per ounce «does not seem impossible in the medium to long term.»
The US dollar weakened against major currencies after remarks from Federal Reserve Chair Jerome Powell reinforced expectations of a rate-cut cycle. Traders are now pricing in a 25 basis-point reduction in October and another in December, with probabilities of 96% and 93% respectively.
Meanwhile, President Donald Trump said Washington was considering reducing trade ties with China after both countries introduced tit-for-tat port fees this week. Markets are also watching the continuing US government shutdown and political instability in France and Japan.
Gold’s Relative Strength Index stands at 85, suggesting it is overbought. Silver mirrored the surge, rising 2.7% to $52.81 per ounce after touching a record $53.60 on Tuesday amid tightening supply. Platinum gained 1.7% to $1,665.15, while palladium climbed 1.6% to $1,550.50.
