Gold Daily | Gold Hits Record High on U.S. Government Shutdown Fears, Targets $3,950 Next

【Latest Gold Price and Recent Trends】

Gold prices surged to a record high of $3,932.10 per ounce, significantly boosted by concerns over the prolonged U.S. government shutdown, surpassing an intraday rise of $45.

【Technical Analysis】

On the 4-hour chart, the Relative Strength Index (RSI) is nearing overbought territory, suggesting more room for gains. The next target for gold buyers is the psychological level of $3,950 per ounce. A break above this could propel prices towards $4,000. However, a pullback might see prices testing support at $3,872, followed by $3,820 and possibly $3,753 if a deeper correction occurs.

【Market Sentiment and Economic Background】

The U.S. government shutdown, now in its seventh day, fuels gold's appeal as a safe haven. Concerns about layoffs due to the impasse between Republicans and Democrats, exacerbated by President Trump's comments blaming Democrats for job losses, have increased investor anxiety. This uncertainty, combined with postponed economic data releases and potential Federal Reserve rate cuts, paints a bleak economic outlook, enhancing gold's attractiveness.

【Analyst Opinions】

Dhwani Mehta from FXStreet notes that, despite the dollar's rebound, gold buying remains robust due to increased risk-aversion amid a dim U.S. economic outlook. Christian Borjon Valencia predicts resistance at $3,950 and $4,000 following the breach of $3,900. The ongoing federal shutdown delays crucial economic data, adding to market uncertainty. Analysts emphasize monitoring U.S. government negotiations and private sector data for further insights into economic and monetary policy directions.