Gold prices rose in the European market on Wednesday, extending gains for the fourth consecutive session and continuing to break records — surpassing the $4,000 mark for the first time in history.
The rally comes amid strong demand for the precious metal as a safe haven, driven by political developments in Japan and France, the ongoing US government shutdown, and growing expectations of additional interest rate cuts by the Federal Reserve.
Price Overview
• Gold Prices Today: Gold rose 1.1% to a record high of $4,027.30 an ounce, from an opening level of $3,984.97, after touching an intraday low of $3,983.35.
• On Tuesday, gold settled up 0.6%, marking its third consecutive daily gain amid heightened global political uncertainty.
Strong Demand
Demand for gold has surged this week, fueled by political turbulence in Japan and France, as investors flocked to the safe-haven asset amid rising uncertainty in the world’s major economies.
A senior White House official said the Trump administration would begin large-scale layoffs of federal employees if President Donald Trump determines that negotiations with congressional Democrats to end the partial government shutdown “yield no results.”
US Interest Rates
• Federal Reserve member Stephen Miran once again urged a sharp path of rate cuts, citing the influence of the Trump administration’s economic policies.
• Kansas City Fed President Jeff Schmid, however, said he was unwilling to cut rates further, emphasizing that the central bank should focus on the “extremely high inflation risk” rather than apparent labor market weakness.
• According to CME’s FedWatch Tool, market pricing currently indicates a 95% probability of a 25-basis-point rate cut at the October meeting, and a 5% probability of holding rates unchanged.
• To reassess these probabilities, investors are closely monitoring the resumption of key US economic data releases and upcoming comments from Federal Reserve officials.
Gold Outlook
• Vivek Dhar, head of commodities research at Commonwealth Bank of Australia, said in a note that the latest surge in gold prices “likely reflects safe-haven demand linked to the US government shutdown and the resignation of French Prime Minister Sébastien Lecornu.”
• Goldman Sachs raised its year-end 2026 gold price forecast to $4,900 per ounce from $4,300 on Monday, citing strong inflows into Western exchange-traded funds (ETFs) and sustained central bank purchases.
SPDR Gold Trust
Holdings at SPDR Gold Trust, the world’s largest gold-backed ETF, fell by 0.02 metric tons on Tuesday — the fourth consecutive daily decline — bringing total holdings down to 1,013.15 metric tons.
