Gold prices edged higher in early Wednesday trading, once again reaching a new record high. The precious metal continues to draw support from heightened geopolitical tensions and persistent economic uncertainty, which are boosting its safe-haven appeal. Expectations of a more dovish Federal Reserve remain a key driver, with markets pricing in two additional rate cuts before the end of 2025 and further easing likely in 2026. This has weakened the US dollar, creating a favourable backdrop for bullion. The US government shutdown is adding to the risk-off mood, as a prolonged disruption creates further uncertainty and could weigh on growth, increasing pressure for monetary stimulus. Against a backdrop of persistent geopolitical tensions and economic uncertainty — with central bank buying and looser Fed policy likely to continue — the outlook for gold remains bullish. Prices, currently just below $3,900, could rise further if current conditions persist.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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