Gold just won’t quit. Prices surged again on Thursday, pushing to a fresh three-week high near $4,213. Traders are piling in, betting the Fed’s gearing up for another rate cut in December. Weak US economic data—sluggish job growth and worries over shrinking GDP—keeps weighing on the Dollar. With all this uncertainty and the greenback under pressure, investors keep running to gold for safety, driving demand higher.
Sure, the US government shutdown funding lifted some spirits in global markets. But underneath, investors aren’t exactly celebrating. Most are still wary about the bigger economic picture. Some analysts figure the shutdown already shaved 1.5% to 2% off last quarter’s GDP, which keeps the Dollar on the back foot. Everyone’s watching the Fed for clues—what they say next could set the tone for the next few months.
Mixed Signals Keep Gold Traders Guessing
The government reopening gave markets a boost and cooled the rush for safe havens like gold, but the metal still has plenty of support. Slower US growth and talk of lower rates have traders betting the Fed will stay dovish. Fed officials—like Atlanta’s Raphael Bostic—keep saying inflation’s in check, which only strengthens the case for easier policy.
But honestly, the signals are all over the place. Some signs point to recovery, others to more easing. This tug-of-war is making gold prices jumpy in the short term. A lot of analysts think this back-and-forth will keep gold range-bound, but with a slight tilt higher.
Gold Outlook: Staying Strong Above $4,200
Gold’s holding firmly above that key $4,200 level, and that’s a big deal for bulls. The technical look good, and momentum points to a run at $4,250—even $4,300—if the Fed stays soft. However, if gold drops to around $4,180–$4,100, buyers are likely to step in, helping to prevent further fall
