Gold Prices Surge Towards $4,700 Amid Expectations of Rate Cuts and Rising Global Risks

Gold prices have increased for the fourth consecutive day, approaching their highest level in three weeks, buoyed by expectations of a U.S. Federal Reserve interest rate cut next month and escalating global political and economic risks.

On Wednesday morning, the spot price of the precious metal rose by 0.4% to $4,142.70 per ounce, while December futures climbed 0.8% to $4,149.20, according to data from Investing.com.

Analysts at UBS predict that prices could continue to rise, potentially exceeding $4,700 per ounce in the first quarter of 2026, even amid a temporary improvement in investor sentiment following the resolution of the longest government shutdown in U.S. history.

NZ Bank analysts noted that the increase is driven by rising demand for safe-haven assets amid trade uncertainties and a slowing economy, while escalating global debt levels provide additional support for the yellow metal.

The World Gold Council reported that global demand for gold reached record levels in the third quarter of 2025, fueled by strong investment flows and a resurgence in central bank purchases, making this year the strongest since 2011.