Usman Salis
● Gold futures jumped 3.54% to $4,362.3 per ounce on COMEX, bringing the precious metal close to its highest closing price ever, according to a Barchart data. The surge reflects growing demand for defensive assets as traders expect several Fed rate cuts by year-end.
● The move stems from shifting central bank policies. As monetary easing signals emerge, investors are hedging against currency weakness and slowing growth. But there's a catch: if inflation cools faster than anticipated or U.S. yields bounce back, gold's steep climb could reverse sharply. Speculative money and momentum trading are adding fuel—and volatility—to the fire.
● Record prices are a mixed bag. Mining companies are seeing profits soar, while jewelers struggle with skyrocketing costs. Central banks in China, India, and Turkey keep stacking gold reserves as a buffer against dollar risk, which supports long-term demand. For individual investors, gold ETFs and futures offer easier access than physical bullion during this uncertainty.
● Gold's breakout above $4,300 isn't just technical—it signals a fundamental shift. With mounting fiscal deficits and eroding confidence in paper currencies, big players like sovereign funds and macro hedge funds are loading up on tangible assets. A close above $4,360 would officially be the highest settlement in gold's history.
Usman Salis
