Gold prices edged higher in early Tuesday trading, reaching yet another record high. The precious metal continues to find strong support amid elevated geopolitical tensions and persistent economic uncertainty, which are enhancing its appeal as a safe-haven asset. Also fuelling the rally — which has gold on track for its best monthly performance in 14 years — are increasingly dovish expectations for the Federal Reserve. With markets pricing in two additional rate cuts before the end of the year and further easing likely in 2026, the US dollar has been depreciating against its peers, a dynamic that is highly supportive for bullion. Adding to this, there is a growing likelihood of a US government shutdown in early October, as Democrats and Republicans struggle to reach a bipartisan agreement to release the federal funds needed to maintain public sector operations in the world’s largest economy. Such a scenario would introduce an additional layer of uncertainty, prompting investors to increase their exposure to safe-haven assets — creating scope for further gains in gold prices.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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