Events in France and Japan are influencing pricing.
Gold has set a new record, approaching the $4000 per ounce mark. Uncertainty in the financial markets has been heightened by the shutdown in the U.S. and the political crisis in France.
According to the Investing platform, gold reached $3985.37 per ounce. Thus, 1 gram of the metal costs $128.56. Bloomberg reports that the shutdown, which has lasted for two weeks, has deprived investors of key data needed to assess the state of the U.S. economy, while the Federal Reserve is trying to evaluate changing conditions. Traders are still counting on a quarter-point rate cut this month, which should benefit gold.
In France, Sébastien Lecornu resigned as Prime Minister after unsuccessful attempts to negotiate with political parties regarding budget expenditures, while the deadlock hindered efforts to contain the largest budget deficit in the Eurozone. Meanwhile, the likely appointment of Sanae Takaichi as Prime Minister of Japan has also shaken financial markets.
Nicky Shiels, head of metals research and strategy at MKS PAMP SA, noted that political upheavals in France and Japan exacerbate budget concerns and contribute to rising gold prices.
Analysts at Goldman Sachs Group Inc. believe that gold prices could rise to nearly $5000 per ounce or more than $160 per gram if 1% of the private market for U.S. Treasury bonds is replaced with the precious metal.
Later, they stated that gold still has growth potential. Experts raised their price forecast for December 2026 from $4300 to $4900 per ounce.
The spot price of gold remained virtually unchanged at $3963.95 per ounce, with prices on track for the largest annual increase since 1979.
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