World gold prices surged to $4200.

This week, global gold prices surged to $4,200 as investors focused on the US House of Representatives vote on a budget package to end the 42-day government shutdown, the longest in the country's history.

Specifically, spot gold prices rose 2.03% to $4,196.06 per ounce, the highest level since the week of October 20th, when gold hit a record high of nearly $4,381 per ounce. In New York, December gold futures also rose 1.6%, trading around $4,182.70 per ounce.

According to independent trader Tai Wong, world gold prices are maintaining their recent upward momentum as the US House of Representatives prepares for a vote. He believes that if the approval process encounters problems or delays, both stocks and precious metals could be negatively impacted.

Meanwhile, Wall Street opened in positive territory as the Dow Jones index hit a record high, reflecting investor optimism about the prospect of an end to the 42-day government shutdown.

According to a report from ADP, data from the four weeks ending October 25th shows that US private businesses cut an average of 11,250 jobs per week, indicating that the labor market remains weak.

This data reinforces expectations that the Fed will have to ease monetary policy to support growth. According to CME Group's FedWatch tool, the probability of the Fed cutting interest rates by another 25 basis points at its December meeting is now 63%, up from earlier in the week.

Analysts suggest that gold prices typically benefit from low interest rates and economic uncertainty. Experts at SEB Research believe gold has consolidated around the $4,000/ounce mark, and the overall trend remains upward.

Unless global liquidity tightens or the US dollar strengthens significantly again, gold prices are highly likely to continue their upward trend in the near future.

After reaching a historical peak in October, gold prices have corrected as investors took profits due to concerns about the rapid rise. According to Bloomberg data, gold ETFs have recorded three consecutive weeks of net outflows. However, gold prices are still projected to rise more than 55% in 2025, heading towards their strongest gain since 1979.

This upward trend is bolstered by low interest rates, increased gold purchases by global central banks, and rising safe-haven demand amid economic uncertainty.

This week, gold prices continued to show signs of starting a new upward cycle, holding steady around $4,000 per ounce and surging strongly above $4,100 per ounce.

Experts believe the market is pricing in the possibility of a Fed interest rate cut in December, helping precious metals solidify their position as a safe-haven investment during times of volatility.

According to Vantage Markets expert Hebe Chan, the recovery in gold prices above $4,100 per ounce shows that anxieties persist despite general market optimism about the upcoming reopening of the US government. She believes that the lingering effects of the longest government shutdown in US history will continue to fuel demand for gold as a safe-haven asset in the near future.

Charu Chanana, Director of Investment Strategy at Saxo Markets (Singapore), believes that gold prices are likely to consolidate further before entering a new upward trend in 2026.

According to her, market capital may shift from overheated assets like gold and AI technology stocks to less prominent sectors, creating a short-term equilibrium before gold resumes its upward trend in the medium term.