Gold Surges Toward $4,100 on Deficit Fears

Gold is accelerating upward once again, inching closer to the $4,100 mark while global markets digest growing concerns about U.S. fiscal policy. The metal's steady climb comes as traders expect government spending to keep expanding, making gold increasingly attractive as a defensive play.

Gold's Momentum Builds on Fiscal Uncertainty

Gold's latest advance reflects mounting expectations that deficit spending in the United States is set to rise further following the new government funding agreement. The metal is trading at $4,081.56, up $71.76 (+1.79%), with the price steadily climbing throughout the evening session. The slope shows consistently upward momentum rather than volatile, spike-driven moves.

After a brief pause around 19:45, gold resumed its climb, moving through resistance zones and stabilizing near the highs around $4,082. The precious metal remains comfortably above the key psychological support at $4,000, signaling strong buying interest. There are no sharp reversals visible, supporting the idea of quiet yet persistent accumulation.

What's Driving Gold Higher

Several factors are fueling gold's strength right now:

• U.S. government funding deal: The newly reached agreement avoids a shutdown but confirms continued expansion of federal spending—an environment that's historically been good for gold.
• Deficit spending expectations: Gold tends to appreciate when long-term deficits rise, as investors seek protection against currency dilution and inflationary pressures.
• Safe-haven demand: Lingering market instability and geopolitical tensions continue pushing capital toward defensive assets like bullion.

How Close to New Highs?

Gold is now just 7% away from record highs, and current technical conditions suggest the market may attempt a retest soon. A move above $4,100 could open the path toward the $4,150–$4,200 range, where stronger resistance might emerge.

Short-term cooling is possible if the U.S. dollar strengthens or Treasury yields bounce back. However, as long as federal spending stays elevated, the macro trend keeps favoring gold's upward path. For now, gold's steady push toward $4,100 shows a market increasingly convinced that fiscal pressures will keep fueling demand for one of the world's most reliable long-term hedges.