XAU/USD approaches record territory on rising demand for safe-haven assets
Gold prices surged to near $3,935 per ounce, marking their highest level of 2025 as investors turned to safe-haven assets amid concerns surrounding the U.S. fiscal outlook and the ongoing government shutdown risks. The metal has gained more than 18% over the past quarter, reflecting renewed confidence in gold’s role as a long-term store of value.
On the technical front, XAU/USD has maintained a steady uptrend since early September, consistently forming higher highs and higher lows. The price is currently testing an ascending trendline resistance that has guided the rally since July. Key support levels remain near $3,790, $3,710, and $3,400, which may act as consolidation zones if a short-term correction unfolds.
“Gold’s latest move reflects mounting anxiety over U.S. debt levels and uncertainty around future Federal Reserve policy. Investors are increasingly shifting from equities into tangible assets,” said a senior BITX market strategist.
BITX Analysts note that declining real yields and a softer U.S. dollar have further strengthened the bullish case for gold. With the Fed signaling a more cautious tone on interest rate hikes, real returns on bonds are expected to narrow, making non-yielding assets like gold comparatively more attractive.
“If prices sustain above the $3,920–$3,950 zone, gold could challenge the psychological $4,000 level in the coming weeks,” According to BITX analysts, that “institutional demand remains firm, especially from central banks diversifying reserves away from the dollar.”
Gold’s breakout above $3,900 highlights the growing investor shift toward safety and inflation hedges — a trend that could continue if fiscal uncertainty and geopolitical risks persist into the final quarter of 2025.
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