Gold is preparing to reach the 4,000 Dollar limit.

Gold Prices Are Breaking Records

Gold has reached a new record, getting closer to the target of 4,000 dollars per ounce. Investors believe that the precious metal could be a safe haven amid the increasing uncertainty due to factors such as the U.S. government shutdown and the political crisis in France.

What Are the Latest Developments?

On Monday, gold bullion gained 1.9%, reaching 3,977.44 dollars per ounce. With the U.S. federal operations entering their second week of shutdown, investors are deprived of key economic data.

Interest Rate Policies and Market Effects

The U.S. Federal Reserve is struggling to assess the ongoing developments. Markets are pricing in a possibility of a quarter-point interest rate cut for this month; this situation is seen as a positive development for gold, which does not yield interest.

The Political Crisis in France and Global Effects

In France, Prime Minister Sébastien Lecornu has resigned due to disagreements among political parties over budget expenditures. This situation negatively affects the Eurozone's efforts to control its budget deficit. Additionally, the potential premiership of Sanae Takaichi in Japan has caused fluctuations in the financial markets.

Expert Opinions

Metal strategy director Nicky Shiels emphasized that the political developments in France and Japan have contributed to the gold rally by increasing financial concerns. Pepperstone Group strategist Ahmad Assiri stated, “These high levels reinforce gold’s strategic role in portfolios.”

Goldman Sachs' Expectations

Goldman Sachs continues to maintain its long-standing positive outlook on gold. They raised their price forecast for gold per ounce for December 2026 from 4,300 dollars to 4,900 dollars. Analysts note that this increase is driven by ETF inflows and purchases by central banks.

Market Situation

As of 10:27 Singapore time, spot gold is trading at 3,963.95 dollars per ounce. Prices are on track for the largest annual gain since 1979. The Bloomberg Dollar Spot Index remained unchanged. Additionally, silver has managed to stay above 48 dollars per ounce, palladium has risen, while platinum has maintained a stable course.