Gold Prices (XAUUSD) Steady Above $4,000 Level Supported by US Shutdown Concerns

Gold price (XAUUSD) holds above $4,000. Understand the analysis from HSB Investment regarding the factors holding back the price of XAU/USD today before you take a trading position.

World gold prices (XAUUSD) showed significant resilience in today’s trading, managing to maintain its position above the psychological level of $4,000 per troy ounce.

Gold was observed to stabilize around the $4,010 level in the Asian session, strongly supported by increased demand for safe haven assets amid complex economic uncertainty. Despite the mild correction, market sentiment still shows that investors are not ready to abandon gold.

Internal Crisis of the United States

According to HSB Investment market analysts, the main driving factor behind stable gold prices is domestic developments in the United States, including:

Government Shutdown Concerns: The US government shutdown which is now entering its ninth day without a clear resolution has triggered market anxiety. Warnings about potential payment disruptions for federal employees added to sentiment of uncertainty, prompting investors to turn to gold.

Prospects for the Fed’s Loose Monetary Policy: Signals from the US central bank (The Fed) regarding the potential for two more interest rate cuts after the cut in September provide medium-term structural support for gold. Lower interest rates make non-yielding assets like gold more attractive than bonds.

Limited Upside Potential

Despite the safe haven’s strong foundations, today’s gold (XAU/USD) price gains are expected to be limited, driven by two bearish factors:

Easing Geopolitical Tensions: US President Donald Trump’s announcement of the first phase of a peace deal between Israel and Hamas in the Middle East eased global tensions, which traditionally reduce demand for hedging against gold.

US Dollar Strength: If the US Dollar (USD) shows significant strength again, commodities priced in dollar terms may face selling pressure.

Market Outlook

Traders and market analysts are advised to continue monitoring the dynamics between US internal problems (especially developments in the government shutdown) versus easing geopolitical tensions. The balance of these factors will be the main determinant of the direction of gold (XAUUSD) price movement for the remainder of the day.

About HSB Investment (PT Handal Semesta Berjangka)

HSB Investment is an official broker and is directly supervised by the Commodity Trade Supervisory Agency (Bappebti) under the Ministry of Trade of the Republic of Indonesia. HSB is also registered with the Financial Services Authority (OJK) and Bank Indonesia (BI), and is a member of the ICDX exchange, ICH Clearing House, and the Aspebtindo association.

This press release has also appeared on VRITIMES