Gold continued its climb by creating a new high above $3,990, following deepening market concerns as investors sought refuge in safe assets amid the prolonged US government shutdown and growing expectations of further Fed policy easing.
At 9.30 am, gold prices were at $3,995, up 0.27% since it opened early Wednesday in Asian trading.
The moderate trend indicates a decline in short-term momentum, with market participants cautious as the precious yellow metal approaches the psychological level of $4,000, a sign of ongoing difficulties.
Moderate support for the US dollar (USD) was a minor factor in gold’s resistance, with the gains coming as political unrest in Japan and France weighed on the performance of their respective currencies.
Sentiment was broad-based, with market participants expecting the Fed to be more dovish with successive rate cuts in October and December.
The outlook for lower rates alongside ongoing geopolitical tensions and steady central bank buying, keeps the long-term trajectory for bullion tilted towards the upside.
