Gold continued to set new records on Wednesday (October 1), nearly reaching US$3,900 per ounce.
After spending the summer months consolidating, the yellow metal began pushing higher toward the end of August.
It quickly reached US$3,500 and continued past US$3,600, US$3,700 and US$3,800; gold rose as high as US$3,895 per ounce on Wednesday before retreating back to the US$3,850 mark by 2:00 p.m. EDT.
The yellow metal is up over 10 percent in the last month, and about 44 percent year-to-date.
Gold price, June 30 to October 1, 2025.
Gold’s latest rise comes after US Congress failed to reach an agreement on a spending bill ahead of the new fiscal year on Tuesday (September 30), triggering a government shutdown.
Democrats and Republicans had been at loggerheads as Democrats pushed for changes to the bill, including an extension to billions of dollars in subsidies for Obamacare, and as President Donald Trump threatened thousands of permanent layoffs — not just temporary furloughs — in the event of a shutdown.
Beyond current events, gold’s rise is underpinned by factors like strong central bank buying, global geopolitical uncertainty, concerns about the US dollar and other fiat currencies and expectations of lower interest rates.
Those factors have many experts predicting a rise beyond US$4,000, potentially before the end of the year, although a correction is widely expected beforehand.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
This post appeared first on investingnews.com