Gold soared past $3,800 per ounce for the first time, driven by rate-cut expectations and renewed geopolitical tensions.
U.S. futures climbed 1% to $3,845.70, while the dollar index eased, making bullion cheaper for overseas buyers.
Viewed through an investor-sentiment lens, the rally underscores gold’s role as a hedge against policy uncertainty and conflict. With Washington on the brink of a government shutdown and Russian strikes on Kyiv, demand for safe assets has surged. Moreover, fresh bets on Fed rate cuts in October and December have fueled bullish momentum.
“Many view gold as the sum of all fears, economic or political,” noted Ross Norman, independent analyst. He argued that current tensions on both fronts explain the metal’s strong performance.
UBS analyst Giovanni Staunovo expects further upside, forecasting gold could reach $3,900 per ounce as rate cuts materialise over the next six months. Meanwhile, silver climbed 2% to $46.90, marking a 14-year high, and platinum rose 0.9% to $1,583, its highest in 12 years.
Gold has surged 45% this year, bolstered by central bank purchases, ETF inflows, a weak dollar and retail investors. High demand from brokerages and growing industrial use of silver and platinum also reflect a shifting market landscape amid supply-chain concerns.
(Source: Reuters)
To read more on Business News, head to the 🔗 link.
