Gold Market Update

Key Highlights

• New Record for Gold: Gold reached a new all-time high of $3,977.44 per ounce, gaining 1.9% on Monday.
• Market Drivers:
  • U.S. Government Shutdown: Currently in its second week, limiting access to crucial economic data and complicating the Federal Reserve’s decisions.
  • Political Crisis in France: Resignation of Prime Minister Sebastien Lecornu creates instability, raising concerns about new economic issues in Europe.
• Investor Behavior: Increased demand for gold as a safe-haven asset amid uncertainties; anticipation of a 25-basis-point rate cut by the Federal Reserve.
• Central Bank and ETF Activity: Active purchasing by central banks and ETFs; Goldman Sachs revised its price forecast for December 2026 from $4,300 to $4,900 per ounce.
• Other Precious Metals: Silver stable above $48 per ounce; platinum remains stable; palladium prices are climbing.

Technical Outlook

• Resistance Levels: Nearest resistance at $4,008; breaking this could lead to a target of $4,062 and a long-term target around $4,124.
• Support Levels: Key support at $3,954; a breach could push prices down to $3,906 and potentially $3,849.

Decision Points

• Buy Signal: Consider buying if gold breaks above $4,008.
• Sell Signal: Consider selling if gold falls below $3,954.

Conclusion

The current environment favors gold as a safe-haven investment due to geopolitical instability and economic uncertainty. Monitor resistance and support levels for informed trading decisions.