GOLD prices remained stable on Thursday, trading close to the record peak reached a day earlier, as investors anticipated additional interest rate reductions from the Federal Reserve and monitored ongoing political turmoil in Washington.
The precious metal traded at $3,862.07 per ounce just below Wednesday’s all-time high of $3,895.09. December futures contracts slipped 0.3% to $3,887.50, said Reuters.
Market analysts pointed to disappointing employment figures as a catalyst for renewed speculation about monetary policy easing. Private sector payrolls contracted by 32,000 positions in September, said Reuters citing ADP data released Wednesday, following a revised 3,000 decline the previous month.
The partial closure of US government operations, triggered by congressional gridlock over budget negotiations, has added to investor anxiety whilst potentially delaying key economic releases, including Friday’s non-farm payrolls report.
“The weaker dollar and government shutdown have supported gold’s rally,” said City Index senior analyst Matt Simpson, adding that speculative positioning showed funds pursuing higher prices without reaching excessive levels.
Despite Chicago Federal Reserve President Austan Goolsbee expressing heightened inflation concerns, markets are pricing in a virtually certain 25 basis point rate cut this month.
Goldman Sachs has revised its price targets upward to $4,000 per ounce by mid-2026 and $4,300 by year-end 2026, citing strong investment demand.
“The upside risks to our $4,000/oz mid-2026 and $4,300/oz December 2026 gold price forecasts have intensified further due to speculative positioning and large upside surprise to Western ETF holdings,” Goldman Sachs said in a note.
SPDR Gold Trust holdings climbed to their highest level since July 2022.
Other precious metals showed mixed performance, with silver declining 0.3% whilst palladium advanced 1.5%, said the newswire.
