World gold price jumps to 4200 USD

In the middle of this week, the world gold price jumped to 4,200 USD as investors turned their attention to the vote in the US House of Representatives on a budget package to help end the 42-day government shutdown, the longest in the country's history.

Specifically, spot gold prices increased by 2.03% to 4,196.06 USD/ounce, the highest level since the week of October 20, when gold set a record of nearly 4,381 USD/ounce. In New York, the December gold futures contract also increased by 1.6%, trading around 4,182.70 USD/ounce.

Gold prices are holding on to recent gains as the US House of Representatives prepares to vote, according to independent trader Tai Wong. He said that if the approval process is delayed or hit by a snag, both stocks and precious metals could be negatively impacted.

Meanwhile, Wall Street opened in the green as the Dow Jones index hit a record high, reflecting investor optimism about the prospect of ending the 42-day government shutdown.

According to a report from ADP, data for the four weeks through October 25 showed that US private businesses cut an average of 11,250 jobs per week, showing that the labor market is still weakening.

The 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 at 63%, up from earlier in the week.

Analysts say gold prices typically benefit in low-interest-rate environments and when the economy faces a lot of uncertainty. Experts at SEB Research say gold has consolidated around the $4,000/ounce level, and the overall trend remains bullish.

Unless global liquidity tightens or the US dollar strengthens again, gold prices are likely to continue to move higher in the coming time.

After hitting a record high in October, gold prices have corrected as investors took profits amid concerns that the rally was too rapid. Gold ETFs have seen three straight weeks of net outflows, according to Bloomberg data. Still, gold prices are expected to rise more than 55% in 2025, on track for their biggest gain since 1979.

The rally was underpinned by low interest rates, increased gold buying by global central banks and increased safe-haven demand amid economic uncertainty.

This week, gold prices continued to show signs of starting a new uptrend, remaining steady around the $4,000/ounce range and rebounding strongly above $4,100/ounce.

Experts say the market is pricing in the possibility of a Fed rate cut in December, helping the precious metal cement its status as a safe haven investment during volatile times.

According to Vantage Markets expert Hebe Chan, the recovery of gold prices above the threshold of 4,100 USD/ounce shows that the concern still exists despite the general market being optimistic about the upcoming reopening of the US government. She commented that the lingering consequences of the longest government shutdown in US history will cause the demand for gold as a safe haven asset to continue in the coming time.

Expert Charu Chanana, Director of Investment Strategy at Saxo Markets (Singapore), said that gold prices will likely accumulate further before entering a new uptrend in 2026.

According to her, money flow in the market may shift from overheated assets such as gold and AI technology stocks to less prominent sectors, creating a short-term balance before gold continues its upward trend in the medium term.