07/10/2025
Gold Near Record Highs โ Summary (October 7, 2025)
Current Price: Gold (XAU/USD) trades around $3,985, just below its record high of $3,977, as traders eye the $4,000 psychological level.
Main Drivers:
-Safe-haven demand remains strong due to the prolonged US government shutdown and global political tensions (Japan and France).
-US Dollar and Treasury yields are firming โ the DXY at 98.50 (+0.42%), 10-year yield at 4.17%, and 30-year yield at 4.77% โ slightly capping goldโs momentum.
-Markets expect Fed rate cuts in October and December, supporting long-term bullish sentiment for gold.
Other Factors:
-Chinaโs central bank (PBOC) added gold for the 11th consecutive month, now holding 74.06 million troy ounces.
-The US shutdown is on its 7th day; the Senate failed again to pass a funding bill (52โ42 vote).
-The White House warns of potential federal workforce cuts if the impasse continues.
-Fed officials remain cautious, KC Fedโs Schmid said policy is โslightly restrictiveโ but still sees inflation as โtoo high.โ
Technical View:
-The uptrend remains intact, but momentum indicators are overbought, hinting at a possible short-term pullback before another leg higher.
Overall:
Goldโs long-term bias stays bullish due to rate cut expectations, safe-haven demand, and central bank buying, but near-term gains may pause as the US Dollar and yields strengthen.
