Synopsis: Gold surged to another all-time high, hitting $3,977.45/oz as political turmoil and expectations of monetary easing fueled demand.
With U.S. futures briefly touching $4,000, analysts remain bullish, projecting further upside amid central bank buying and strong retail inflows.
Gold Prices at Record Highs
Gold prices rose to fresh peaks on Tuesday, lifted by global political uncertainties and optimism over potential monetary policy easing.
Spot gold hit $3,977.45 per ounce, while U.S. December futures briefly touched $4,000 before easing back.
Retail sentiment on Stocktwits shifted into the ‘bullish’ zone for SPDR Gold Shares ETF (GLD), compared to ‘neutral’ just a day earlier.
“$GLD this isn’t like other stocks. Central banks are piling money into gold because they know what’s coming.
Retail investors haven’t even woken up yet,” said one user.
What’s Driving Gold Higher?
Gold has soared over 50% this year, powered by:
- Geopolitical turmoil (U.S. shutdown, French political crisis)
- Dollar weakness and financial uncertainty
- Central bank buying across major economies
- Strong retail participation via ETFs and gold-linked products
Net inflows last week alone stood at 655.7k ounces, lifting total global gold ETF holdings to their highest level since Sept 2022.
Political Turmoil Adds to Shine
The U.S. government shutdown entered its 7th day, delaying crucial economic data releases like the jobs report.
This stoked fears about America’s finances, further weakening the dollar.
Meanwhile, French PM Sebastien Lecornu resigned amid budget paralysis and a debt crisis, intensifying global political instability.
Analysts See More Upside
- Goldman Sachs raised its year-end 2026 forecast to $4,900 (from $4,300).
- ING Commodities analysts noted that markets expect a quarter-point rate cut, which could support gold further.
- Goldman added that private sector diversification into gold could push ETF holdings beyond estimates.
Outpacing Equities & Bitcoin
Gold has surged 51% in 2025, outperforming equities and crypto:
| Asset | YTD Gain (%) |
| Gold (Spot) | +51% |
| S&P 500 Index | +17% |
| Nasdaq Index | +21% |
| Bitcoin | +32% |
| VanEck Gold Miners ETF (GDX) | +125% |
📌 Final Note
With central banks diversifying reserves, retail investors entering, and political-economic turbulence persisting,
analysts believe gold’s rally is far from over. If U.S. monetary easing materializes, the precious metal could push well beyond $4,000,
cementing its role as the world’s ultimate safe-haven asset.
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