Created
: 2025.10.21
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Gold Price Forecast: XAU/USD climbs to near fresh record high above $4,350 amid broader uncertainty
World FX news
Breaking news
Gold Price Forecast: XAU/USD climbs to near fresh record high above $4,350 amid broader uncertainty
New
2025.10.21 08:08
2025.10.21 08:08
2025.10.21 08:08
- Gold price jumps to around $4,370 in Tuesday's early Asian session.
- A prolonged US government shutdown and widely anticipated US rate cut support the Gold price.
- US September CPI inflation report will take center stage later on Friday due to the government shutdown-driven data drought.
Gold price (XAU/USD) holds positive ground around $4,370 after reaching a fresh record high near $4,380 during the early Asian session on Tuesday. Traders continue to assess the developments surrounding the US government shutdown, prospects for further rate cuts by the Federal Reserve (Fed) and renewed US credit risks.
The ongoing US federal government shutdown could boost the safe-haven flows, supporting the Gold price. The government shutdown has entered its 21th days with no end in sight, after senators failed for the 10th time to resolve the impasse in votes on Thursday. The shutdown is now the third-longest funding lapse in modern history.
Additionally, expectations of a Fed rate cut contribute to the yellow metal's upside. Traders are currently pricing in nearly a 99% possibility that the US central bank will cut interest rates again next week, followed by another reduction in December, according to the CME FedWatch tool. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.
On the other hand, any signs of easing trade tensions between the US and China, the world's two largest economies, could dampen demand for safe-haven assets such as gold. Comments from US President Donald Trump alleviated some concerns around its tensions with China, saying that they will have a "fair deal," with the two sides slated to meet in the coming days.
All eyes will be on the US September Consumer Price Index (CPI) inflation data later on Friday due to the government shutdown-driven data drought. If the reports show a hotter-than-expected outcome, this could lift the US Dollar (USD) and undermine the USD-denominated commodity price in the near term.
Gold FAQs
Gold has played a key role in human's history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn't rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country's solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Last updated
: 2025.10.21
Related articles
Silver Price Forecast: XAG/USD holds below $52.50 as easing trade tensions cap safe-haven demand
2025.10.21 09:54Gold Price Forecast: XAU/USD climbs to near fresh record high above $4,350 amid broader uncertainty
2025.10.21 08:07Gold soars 2% as Fed cut bets deepen, US Dollar softens
2025.10.21 03:13Silver rises on safe-haven demand amid US shutdown, geopolitical risks
2025.10.21 02:05Gold's manic ascent reeks of FOMO - TDS
2025.10.20 23:21Silver markets face downside risks amid self-resolving dislocations - TDS
2025.10.20 23:18
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
EUR/USD falls further to near 1.1630 ahead of ECB Lagarde's speech
The EUR/USD pair extends its two-day downside move to near 1.1630 during the Asian trading session on Tuesday. The major currency pair faces selling pressure as the US Dollar (USD) gains on hopes that the ongoing United States (US) government shutdown will end this week.
New
2025.10.21 12:20WTI remains below $57.00 due to oversupply, demand concerns
West Texas Intermediate (WTI) Oil price remains subdued for the second successive session, trading around $56.80 per barrel during the Asian hours on Tuesday.
New
2025.10.21 11:46USD/CAD strengthens to near 1.4050 ahead of Canadian CPI inflation release
The USD/CAD pair edges higher to near 1.4045 during the Asian trading hours on Tuesday. The Canadian Dollar (CAD) softens against the US Dollar (USD) on a decline in crude oil prices. The Canadian Consumer Price Index (CPI) inflation data for September will be the highlight later on Tuesday.
New
2025.10.21 11:35Japanese Yen drifts lower ahead of Japan's parliamentary vote for new PM
The Japanese Yen (JPY) turns lower against the US Dollar (USD) for the third straight day on Tuesday, though the downside seems limited ahead of Japan's parliamentary vote on a new Prime Minister.
New
2025.10.21 11:27Australian Dollar receives support from US-Australia critical minerals deal
The Australian Dollar (AUD) advances against the US Dollar (USD) on Tuesday, extending its gains for the third successive session. The AUD/USD pair appreciates as the AUD receives support from improved market sentiment amid progress on a United States (US)-Australia trade agreement.
New
2025.10.21 10:41US Dollar Index posts modest losses to near 98.50, US-China trade tensions in focus
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a negative note near 98.60 during the Asian session on Tuesday. The DXY declines amid the ongoing US government shutdown.
New
2025.10.21 10:39PBOC sets USD/CNY reference rate at 7.0930 vs. 7.0973 previous
The People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.0930 compared to the previous day's fix of 7.0973 and 7.1219 Reuters estimate.
New
2025.10.21 10:15Silver Price Forecast: XAG/USD holds below $52.50 as easing trade tensions cap safe-haven demand
Silver price (XAG/USD) declines near $52.35 during the early Asian session on Tuesday. The white metal retreat from last week's record high due to the safe-haven demand eased as trade tensions between the US and China softened.
New
2025.10.21 09:54NZD/USD gains traction to near 0.5750, US-China trade talks in focus
The NZD/USD pair attracts some buyers near 0.5740 during the early Asian session on Tuesday. Easing concerns over the US-China trade tensions provides some support to the China-proxy New Zealand Dollar (NZD) against the US Dollar (USD).
New
2025.10.21 09:00Gold Price Forecast: XAU/USD climbs to near fresh record high above $4,350 amid broader uncertainty
Gold price (XAU/USD) holds positive ground around $4,370 after reaching a fresh record high near $4,380 during the early Asian session on Tuesday.
New
2025.10.21 08:07Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
