Gold prices climbed for a sixth consecutive session on Thursday, setting another all-time high as the US government shutdown and expectations of further Federal Reserve rate cuts fuel demand for the safe-haven metal.
Spot gold touched a record $3,896.43 an ounce before easing back to around $3,830. The previous session also saw a historic peak at $3,895.13. US gold futures mirrored the move, briefly hitting $3,923.30 before paring gains.
The rally, which began in late September, has been propelled by mounting concerns over US fiscal stability and speculation of additional Fed cuts. Traders are now widely expecting another 25-basis-point reduction later this month. Historically, such an environment favours non-yielding assets like gold. In fact, the metal surged over 10% in the weeks leading up to the Fed’s September cut — its first in nearly a year — and that momentum has continued into October.
For 2025, bullion is already up 48%, underpinned by record central bank purchases and surging inflows into gold-backed ETFs. September saw the strongest ETF buying in three years, with Chinese investors also returning to gold funds after a lull in demand.
“Geopolitical tensions, trade disputes, and structural risks are keeping safe-haven demand elevated,” StoneX Group noted on Thursday. “Central banks remain committed to long-term gold accumulation as part of diversification strategies.”
The bullish outlook is shared across Wall Street. Goldman Sachs has reiterated its call for gold as its “highest-conviction long commodity recommendation,” pointing to strong central bank buying, private sector diversification, and gold’s resilience during downturns.
Goldman previously suggested that prices could reach $5,000 an ounce if political interference with the Fed undermines investor confidence. More recently, analyst Daan Struyven stressed that the upside risks to Goldman’s $4,000 per ounce forecast by mid-2026 have grown, citing stronger-than-expected Western ETF demand and the limited role of speculative trading in the current rally.
