/images/ppid_59c68470-image-175939761766811173.webp)
/images/ppid_59c68470-image-175937755190521227.webp)
/images/ppid_59c68470-image-175930753662184664.webp)
/images/ppid_59c68470-image-175920757005380166.webp)
What is the story about?
Gold prices hovered close to record highs on Thursday, supported by renewed bets on US interest rate cuts, a government shutdown in Washington, and strong investor demand.
Spot gold was up 0.2% at $3,871.99 per ounce by 0632 GMT, just below Wednesday's all-time high of $3,895.09.
Weak U.S. private payrolls data, showing a loss of 32,000 jobs in September, revived expectations that the Federal Reserve will cut rates as early as this month. Traders are pricing in a near-certain 25 basis-point reduction, according to the CME FedWatch tool.
"Gold has also been given a bump from the U.S. government shutdown," said Matt Simpson, senior analyst at City Index. "Speculative positioning shows large funds are chasing the move higher, though net exposure is not yet extreme."
Longer-term drivers
Goldman Sachs Research reiterated its bullish forecast, projecting gold to reach $4,000 per ounce by mid-2026 and $4,300 by December 2026, citing "intensified upside risks" from speculative positioning and stronger-than-expected ETF demand.
Holdings in the SPDR Gold Trust, the world's largest gold-backed ETF, climbed to 1,018.89 metric tons on Wednesday—their highest since July 2022.
A structural shift in central bank reserve management is also fueling demand. Emerging-market central banks have significantly accelerated gold purchases since 2022, when Russia’s reserves were frozen following its invasion of Ukraine. Goldman Sachs estimates that every 100 tonnes of central bank purchases adds roughly 1.7% to gold prices.
While conviction buyers such as central banks and ETFs set the long-term direction, opportunistic buyers in emerging markets tend to step in during corrections, cushioning price declines.
Commodities rally broadens
Gold has gained over 40% in 2025 and is on track for a third straight year of double-digit returns. Analysts caution that heavy speculative bets raise the risk of short-term pullbacks but see long-term demand intact.
Other precious metals also firmed. Silver rose 0.1% to $47.38 an ounce, nearing its April 2011 record of $49.80. Platinum climbed 0.7% to $1,567.41, while palladium gained 2.4% to $1,274.68.
"Commodities move in long cycles," said Gurmeet Chadha, CIO at Complete Circle. "While some exposure of 5-10% in gold and silver can help portfolios, investors should remember that prices also correct in time."
Spot gold was up 0.2% at $3,871.99 per ounce by 0632 GMT, just below Wednesday's all-time high of $3,895.09.
Weak U.S. private payrolls data, showing a loss of 32,000 jobs in September, revived expectations that the Federal Reserve will cut rates as early as this month. Traders are pricing in a near-certain 25 basis-point reduction, according to the CME FedWatch tool.
"Gold has also been given a bump from the U.S. government shutdown," said Matt Simpson, senior analyst at City Index. "Speculative positioning shows large funds are chasing the move higher, though net exposure is not yet extreme."
Longer-term drivers
Goldman Sachs Research reiterated its bullish forecast, projecting gold to reach $4,000 per ounce by mid-2026 and $4,300 by December 2026, citing "intensified upside risks" from speculative positioning and stronger-than-expected ETF demand.
Holdings in the SPDR Gold Trust, the world's largest gold-backed ETF, climbed to 1,018.89 metric tons on Wednesday—their highest since July 2022.
A structural shift in central bank reserve management is also fueling demand. Emerging-market central banks have significantly accelerated gold purchases since 2022, when Russia’s reserves were frozen following its invasion of Ukraine. Goldman Sachs estimates that every 100 tonnes of central bank purchases adds roughly 1.7% to gold prices.
While conviction buyers such as central banks and ETFs set the long-term direction, opportunistic buyers in emerging markets tend to step in during corrections, cushioning price declines.
Commodities rally broadens
Gold has gained over 40% in 2025 and is on track for a third straight year of double-digit returns. Analysts caution that heavy speculative bets raise the risk of short-term pullbacks but see long-term demand intact.
Other precious metals also firmed. Silver rose 0.1% to $47.38 an ounce, nearing its April 2011 record of $49.80. Platinum climbed 0.7% to $1,567.41, while palladium gained 2.4% to $1,274.68.
"Commodities move in long cycles," said Gurmeet Chadha, CIO at Complete Circle. "While some exposure of 5-10% in gold and silver can help portfolios, investors should remember that prices also correct in time."
Do you find this article useful?
/images/ppid_59c68470-image-175929503467450791.webp)
/images/ppid_a911dc6a-image-175930304088622886.webp)
/images/ppid_59c68470-image-175919503592158070.webp)
