Gold Hits Record $4,218 as Rate-Cut Bets Spark Investor Rush
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On Wednesday, London spot gold surged past the $4,200 per ounce mark for the first time, closing at $4,218.10
Gold prices soared to record levels this week as investors rushed to hedge against macroeconomic uncertainties and speculated on an imminent U.S. interest rate cut. On Wednesday, London spot gold surged past the $4,200 per ounce mark for the first time, closing at $4,218.10. The metal had broken through both the $4,100 and $4,200 thresholds within a mere five days.
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- Gold prices hit a record $4,218.10/oz, surging over $700 in five weeks, fueled by U.S. rate cut expectations, weaker dollar, and political uncertainty.
- The rally, marked by high volatility and investor FOMO, followed Fed Chair Powell’s dovish comments; Shanghai gold briefly traded at a premium to global prices.
- Analysts warn of overbought conditions and potential correction, while long-term outlook remains bullish due to ongoing policy, fiscal, and geopolitical risks.
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Who’s Who
- Citic Futures Co. Ltd.
- Zhu Shanying of Citic Futures Co. Ltd. attributes the recent gold price rally to a dovish shift by Federal Reserve Chair Jerome Powell, mounting geopolitical tensions, trade frictions, and a fiscal impasse in Washington. Zhu notes that medium to long-term fundamentals remain supportive for gold.
- Minsheng Securities
- Minsheng Securities analyst Shao Xiang attributes the market's "wild" behavior to the U.S. government shutdown, which has created a vacuum of official data. He anticipates that the release of new inflation figures on October 24 will be a crucial turning point for market sentiment.
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What Happened When
- April 2025：
- Gold price touched $3,500 per ounce and began a four-month consolidation phase.
- April 2025：
- A FOMO-fueled surge in gold prices occurred, similar to current market conditions in October.
- After April 2025：
- A four-month consolidation phase in gold prices began.
- August 22, 2025：
- Jerome Powell gave a dovish shift at the Jackson Hole symposium, seen as the beginning of a new rate-cut cycle.
- Late August 2025：
- Gold resumed its climb after the consolidation phase.
- September 2, 2025：
- Gold price reclaimed the $3,500 level.
- By October 8, 2025：
- Gold price rocketed to $4,000 per ounce, a leap of $500 in 36 days.
- October 14, 2025：
- Federal Reserve Chair Jerome Powell’s comments were interpreted as a clear pivot toward monetary easing. On the same day, spot gold fell nearly $90 before rebounding.
- October 15, 2025：
- London spot gold surged past $4,200 per ounce for the first time, closing at $4,218.10. Shanghai gold traded at a premium to international prices briefly. Spot gold dropped $54 within an hour after hitting the new record.
- By October 15, 2025：
- Gold had broken through both the $4,100 and $4,200 thresholds within five days.
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