Asset Watch
Wednesday, 8 October 2025
Gold has surged to an all-time high above $4,000 per ounce, solidifying its role as one of the most reliable safe havens. A key driver of this rally is strong central bank demand, with purchases exceeding 1,000 tons between 2022 and 2024.
The U.S. government shutdown has fuelled political and economic uncertainty, boosting gold’s appeal. At the same time, the Federal Reserve’s signals of further rate cuts (despite inflation remaining well above its 2% target) have weakened the U.S. dollar, which typically moves inversely to gold.
Concerns about the Fed’s independence, coupled with fears of potential intervention in monetary policy under the Trump administration, have further shaken investor confidence. These concerns reduce the attractiveness of U.S. bonds as a safe-haven and pushes capital toward gold instead.
Against a backdrop of rising U.S. public debt and intensifying geopolitical tensions, gold stands out as both a hedge against inflation and a shield against uncertainty. Investors are increasingly treating it as the most reliable store of value in today’s volatile environment.
Gold has broken through the key psychological barrier at $4,000, entering a new trading zone between $4,000 and $4,100. A daily close above the $4,100 resistance would signal bullish dominance and open the way possibly toward the next target at $4,200 per ounce.
Momentum remains strong, with the Relative Strength Index holding above 80, confirming robust upward pressure. Within this scenario, the $4,150 level is the next key resistance to watch.
If gold fails to hold above $4,000 and closes below it on the daily chart, profit-taking could intensify, triggering a potential move towards $3,900. In this case. Nonetheless, the psychological support level at 3950 should be considered. In this scenario, the RSI dropping below 70 would serve as an early warning of a deeper pullback.
Chart Source: ADSS Platform