Gold Prices Climb Towards $4,700 Amid Expectations of U.S. Rate Cuts and Global Risks

Gold prices have increased for the fourth straight day, nearing their highest levels in three weeks, buoyed by expectations of a U.S. interest rate cut next month and growing global political and economic uncertainties.

This Wednesday morning, spot gold rose by 0.4% to $4,142.7 per ounce, while December futures increased by 0.8% to $4,149.2, according to data from Investing.com.

UBS analysts project that prices may continue to rise, potentially surpassing $4,700 per ounce in the first quarter of 2026, despite a temporary boost in investor sentiment following an agreement to end the longest government shutdown in U.S. history.

Analysts at NZ Bank attribute the price increase to heightened demand for safe-haven assets amid trade uncertainties and a global economic slowdown, with rising government debts worldwide further supporting the demand for gold.

The World Gold Council reported that global gold demand hit a record high in the third quarter of 2025, driven by strong investment flows and a resurgence in central bank purchases, marking the strongest year since 2011.