Key Points
- Spot gold climbed 0.3% to $4,336.18, after touching an all-time high of $4,378.69.
- Gold futures surged 1% to $4,348.70, on track for their best weekly gain since 2020.
Gold prices continued their record-breaking run on Friday, notching a new peak above $4,300 per ounce and heading for their strongest weekly performance in five years.
The surge comes as traders seek refuge in the metal amid signs of stress in US regional banks, renewed US-China trade tensions, and heightened expectations of further Federal Reserve rate cuts.
Safe-Haven Flows Dominate
Spot gold was last up 0.3% at $4,336.18, having reached $4,378.69 earlier in the session, while US gold futures for December delivery advanced 1% to $4,348.70.
Bullion has rallied nearly 8% this week, marking its best performance since March 2020 and hitting a new record high each session.
The rally has been underpinned by a combination of risk aversion and policy easing expectations. The recent selloff in regional US bank shares spurred renewed fears over financial stability, driving traders toward gold. Meanwhile, dovish remarks from Fed Governor Christopher Waller, who signalled support for another 25-basis-point rate cut, further boosted appetite for non-yielding assets.
Global Uncertainty Fuels Momentum
Adding to the bullish momentum, US-China relations have deteriorated again, with Beijing accusing Washington of “causing panic” over its rare earth export controls and rejecting calls to ease restrictions. The flare-up has intensified risk sentiment, reinforcing gold’s appeal as a hedge against cross-border shocks.
At the same time, US President Donald Trump and Russian President Vladimir Putin agreed to hold another summit on the Ukraine conflict, keeping traders on edge over potential policy outcomes. Western allies continued to tighten sanctions on Russia’s oil sector, deepening market anxiety.
Technical Analysis
Gold (XAUUSD) surged to $4,369.31, up 0.93% on the day, extending its record-breaking rally as global risk sentiment remains fragile and Treasury yields continue to soften. Traders are seeking refuge in safe-haven assets amid persistent global tensions and uncertainty over the Federal Reserve’s next policy steps.
From a technical perspective, gold’s uptrend remains exceptionally strong, with the price making consecutive higher highs since early September. The metal is firmly supported by the 5-, 10-, and 30-day moving averages, all sloping sharply upward.
The latest bullish breakout above $4,300 has opened the path toward the next psychological target at $4,400, with potential for $4,450–4,500 if momentum persists.
However, the rally appears slightly overextended in the short term. The MACD shows strong bullish momentum, with the histogram widening and both lines diverging upward, a sign of sustained buying pressure.
Still, this level of momentum may invite profit-taking, especially if prices fail to hold above $4,350. Immediate support lies near $4,250, followed by $4,100, where prior consolidation took place.
Fundamentally, the continued climb in gold reflects trader scepticism about the durability of the recent dollar recovery and ongoing concerns about inflation persistence despite easing U.S. data.
Additionally, central bank gold purchases and growing demand from ETFs are adding to the bullish backdrop.
