Gold (XAU/USD) continued its unstoppable rally on Tuesday, climbing above the $4,100 mark and setting another all-time high. The metal remains strongly supported by renewed US-China trade tensions, ongoing geopolitical risks, and growing expectations of more Federal Reserve rate cuts—all factors that boost safe-haven demand.
The recent US government shutdown and uncertainty around trade tariffs have pushed investors toward gold, which is often seen as a reliable store of value in times of market stress. Despite a brief improvement in risk sentiment after President Trump softened his tone on China, traders continue to favor gold over riskier assets. Even the stronger US Dollar has failed to limit the metal’s momentum, highlighting the market’s bullish bias.
Geopolitical tensions in Eastern Europe, including renewed attacks in Ukraine, have further strengthened gold’s appeal. Traders are also betting that the Federal Reserve will cut interest rates by 25 basis points in October, with another possible reduction in December — a dovish signal that typically supports the non-yielding yellow metal.
From a technical view, gold trading prices remain in a strong uptrend after breaking key resistance at $4,060 and holding above $4,100. While the market is overbought, any short-term pullback may be seen as a buying opportunity, with support near $4,055–$4,060.
For investors and traders working with a gold trading broker, the XAU/USD forecast remains bullish in the short term, with upside potential as global uncertainty continues to drive demand for safe-haven assets.
