Gold’s remarkable rally shows no signs of slowing, with spot prices surging past $4,100 per ounce on Monday as investors continue to seek safety amid deepening global and political uncertainty.
The precious metal’s advance comes as the U.S. government shutdown drags on, with no resolution in sight. The impasse in Washington has been further prolonged by the Columbus Day holiday, delaying Senate negotiations. Adding to market jitters, U.S. President Donald Trump reignited trade war fears, accusing China of “strange” behaviour and threatening a new wave of tariffs on Chinese goods. Talks between Trump and Chinese President Xi Jinping have been postponed, dampening hopes for a near-term diplomatic breakthrough.
Meanwhile, Trump has shifted focus to the Middle East, where the early stages of a peace agreement between Israel and Hamas have begun. Hostilities have been paused, remaining hostages released, and civilians are cautiously returning to Gaza — a fragile yet notable diplomatic achievement for the U.S. administration.
Technical Outlook
Gold (XAU/USD) remains firmly bullish, both technically and sentimentally. On the daily chart, momentum indicators have rebounded strongly after brief corrections, showing that buyers still dominate the market. Prices continue to trade well above key moving averages, with the 20-day SMA near $3,841, providing solid support.
In the 4-hour chart, both the Momentum and RSI indicators signal sustained buying pressure. The RSI hovers near 70, reflecting strong demand, while the 20-period SMA sits at $4,026, underpinning near-term support.
Support levels: $4,100 • $4,086 • $4,071
Resistance levels: $4,117 • $4,130 • $4,150
With technicals and fundamentals aligned, gold’s record-breaking run could extend further — as investors brace for ongoing political gridlock, trade tensions, and global uncertainty.
