ActivTrades, as of October 8, 2025
The gold price continues to rise, reaching a new all-time high of over 4,000 US dollars on Wednesday morning, reflecting strong demand for safe-haven assets. Persistent geopolitical tensions and economic uncertainty caused by tariffs, as well as a weaker US dollar – which has fallen by 9% since the beginning of the year – and significant purchases by some central banks have contributed to the precious metal gaining more than 50% in 2025.
In recent days, the geopolitical situation has further deteriorated: The government shutdown in the United States has exacerbated the already negative economic situation, and the political crisis in France threatens to destabilize government bond markets across Europe. This dynamic, along with some speculative trading activities triggered by recent price gains, means that prices are currently technically in overbought territory. However, this fact – coupled with the recent recovery of the US dollar, which would normally represent a headwind for gold due to the inverse correlation between the two assets – has so far been brushed aside by gold bulls.
Given a highly favorable macroeconomic environment and growing expectations that the Federal Reserve will cut interest rates twice more in 2026, traders will closely monitor the release of the latest FOMC minutes later today, as well as public statements from several high-ranking officials. Against this backdrop, there could be further room for gains in the gold price, with any dips likely to be viewed as buying opportunities by optimistic investors.
Ricardo Evangelista – Senior Analyst, ActivTrades
