Gold prices continue to rise, touching a fresh all-time high above $4000 in early Wednesday trading, reflecting strong safe-haven demand. Lingering geopolitical tensions and the economic uncertainty created by tariffs, as well as a weakening US dollar — down 9% so far this year — and significant purchases by some central banks have helped propel the precious metal to gains exceeding 50% in 2025. In recent sessions, the geopolitical landscape has deteriorated further, with a government shutdown in the United States adding to an already negative economic narrative, and a political crisis in France threatening to unsettle sovereign debt markets across Europe. This dynamic, together with some speculative trading triggered by recent gains, means that prices are now, technically, in overbought territory. However, that fact — along with the recent rebound in the US dollar, which would normally act as a headwind for gold due to the inverse correlation between the two assets — has so far been brushed aside by gold bulls. With a highly supportive macroeconomic environment and growing expectations that the Federal Reserve will cut rates twice more in 2026, traders will be watching closely for the release of the latest FOMC minutes later today, as well as public remarks from several senior officials. Against this backdrop, there could be further scope for gains in the gold price, with any dips likely to be seen as buying opportunities by bullish investors.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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