Gold Surges Past $3,800 as US Government Shutdown Fears and Safe-Haven Appetite Rise
Gold continued its record-breaking rise, pushing past $3,800 for the initial time amid growing concerns of a possible US government shutdown and rising safe-haven appetite. The yellow precious metal hit a new record high of close to $3,833 on the back of a weaker US Dollar, suppressed Treasury yields, persistent geopolitical tensions, and fresh tariff tensions. Market players now focus on important US economic reports, such as Pending Home Sales and Friday’s Nonfarm Payrolls release, that may have an impact on Federal Reserve policy. Technical studies point to powerful bullish energy, with short-term support at $3,800 and possible upside to $3,850. KEY LOOKOUTS • Ongoing congressional funding uncertainty may fuel safe-haven buying, underpinning gold prices. • This Friday’s Nonfarm Payrolls (NFP) data will be monitored closely for hints regarding the direction of the Fed’s monetary policy. • A softening USD and muted Treasury yields remain to support gold’s bottom. • Fresh tariff worries and international geopolitical tensions will likely maintain upbeat sentiments for gold. Gold extends its record rally, trading above $3,800 as investors turn to safe-haven assets amid increasing fear of a US government shutdown and persistent geopolitical tensions. A softer US Dollar and moderated Treasury yields have further bolstered the yellow metal, as eyes are on the next US economic releases, such as Pending Home Sales and closely watched Nonfarm Payrolls report. Technicals note strong bullish momentum, with support near $3,800 and potential targets to the upside at $3,850, signaling ongoing strength in the near-term outlook for gold. Gold blasted through $3,800, fueled by safe-haven buying on US government shutdown risks and geopolitical tensions. Weakening USD and tepid Treasury yields underpin the rally, with upside targets to $3,850. • Gold (XAU/USD) hit a new all-time high at around $3,833, continuing its record-breaking run. • Safe-haven demand shot up as US government shutdown fears increased. • Weakening US Dollar and subdued Treasury yields have underpinned gold’s decline. • Continuing geopolitical tensions and fresh tariff worries underpin bullish sentiment. • Important US economic indicators, such as Pending Home Sales and Nonfarm Payrolls, are on the radar. • Technicals print strong bullish momentum with current support at $3,800. • Short-term upside objectives are targeted towards $3,850 and higher if gold holds its breakout. Gold remains resplendent as a safe-haven asset, rising above $3,800 amid increasing tensions over a possible US government shutdown. Investors are flocking to the yellow metal as uncertainty increases over congressional talks and policy decisions, while global geopolitical tensions and renewed tariffs fuel market caution. The overall economic background, such as a weaker US Dollar and muted Treasury yields, adds further support to gold’s appeal, drawing persistent buying interest from investors and institutions. XAU/USD Daily Chart Price SOURCE: TradingView Market players are keeping a close eye on future US economic events, most notably Pending Home Sales and highly awaited Nonfarm Payrolls. These releases are likely to have an impact on the Federal Reserve’s monetary policy expectations, which in turn may affect investor sentiment in world markets. With safe-haven buying still very much in demand, gold still profits from elevated risk aversion, cementing its position as a go-to asset in times of economic and political uncertainty. TECHNICAL ANALYSIS Gold (XAU/USD) has broken decisively above the level of resistance at around $3,800, marking fresh bullish strength. The market is trading above both the 21- and 50-period Simple Moving Averages (SMAs) on the 4-hour chart, suggesting a robust trend higher. Support is immediate at the previous breakout area at $3,800, then at the 21-period SMA at $3,761 and the 50-period SMA at $3,726. The Relative Strength Index (RSI) is at around 73, indicating good buying interest but also indicative of possible overbought levels and subsequent short-term consolidation or selling pressure before more upside to $3,850. FORECAST Gold’s short-term perspective continues to be bullish as it hovers above the pivotal $3,800 mark. If support from buyers continues, prices may move towards the subsequent resistance of $3,850 and even challenge higher levels due to safe-haven demand, the weakening US Dollar, and low Treasury yields. Any optimistic news in global geopolitical scenarios or additional dovish cues from the Fed might propel this upside momentum further. On the flip side, a fall below $3,800 may lead to short-term profit-taking, with fresh support levels around $3,761 and $3,726. Deterioration in safe-haven demand, a higher-than-anticipated US labor report, or fresh risk-on appetite in global markets may keep gold prices under pressure. Nevertheless, falls are set to find fresh buying interest in the vicinity of important support levels, supporting the overall bullish trend.