Gold Nears $4,000 Amid Global Turmoil

Gold surged to fresh record highs this week, breaking above $3,900 and trading in roughly the $3,925–$3,970 range with some prints near $3,963–$3,970 and opening above $3,900 for the first time as it nears the $4,000 level. The rally has been driven by safe‑haven flows from the prolonged U.S. government shutdown, heightened political turmoil in the U.S., France and Japan, a weaker yen and other geopolitical risks. Growing market expectations for Federal Reserve rate cuts this month and into year‑end have pushed real yields lower and reduced the opportunity cost of holding non‑yielding gold. Structural demand—central bank purchases and strong inflows into gold ETFs—has underpinned the advance and pushed holdings to multi‑year highs. Physical markets are mixed, with signs of strain in some Chinese retail buying even as Indian premiums firm ahead of festival season and upcoming London auctions will test demand; analysts say momentum supports further gains but raises the risk of measured pullbacks.