Gold is one of the best safe havens
Gold, which has long been a reflection of global apprehension and a safety net in the midst of financial storms, is now making headlines with a price that has surpassed $4,000 per ounce for the first time, marking a rally unseen in decades. What does this indicator reveal? What has caused investors to turn a blind eye to the risks and pivot their stocks toward the yellow metal
What is happening to gold prices:-
Gold has surged to an all-time high above $4,000 per ounce, solidifying its role as one of the most reliable safe havens. A key driver of this rally is strong central bank demand, with purchases exceeding 1,000 tons between 2022 and 2024.
The U.S. government shutdown has fuelled political and economic uncertainty, boosting gold’s appeal. At the same time, the Federal Reserve’s signals of further rate cuts (despite inflation remaining well above its 2% target) have weakened the U.S. dollar, which typically moves inversely to gold.
Concerns about the Fed’s independence, coupled with fears of potential intervention in monetary policy under the Trump administration, have further shaken investor confidence. These concerns reduce the attractiveness of U.S. bonds as a safe-haven and pushes capital toward gold instead.
Against a backdrop of rising U.S. public debt and intensifying geopolitical tensions, gold stands out as both a hedge against inflation and a shield against uncertainty. Investors are increasingly treating it as the most reliable store of value in today’s volatile environment.
Gold Price – Technical Outlook
Gold has broken through the key psychological barrier at $4,000, entering a new trading zone between $4,000 and $4,100. A daily close above the $4,100 resistance would signal bullish dominance and open the way possibly toward the next target at $4,200 per ounce.
Momentum remains strong, with the Relative Strength Index holding above 80, confirming robust upward pressure. Within this scenario, the $4,150 level is the next key resistance to watch.
Key Levels to Watch in the Bearish Scenario
If gold fails to hold above $4,000 and closes below it on the daily chart, profit-taking could intensify, triggering a potential move towards $3,900. In this case. Nonetheless, the psychological support level at 3950 should be considered. In this scenario, the RSI dropping below 70 would serve as an early warning of a deeper pullback.
Gold – Daily Price Chart
Public Debt and Economic Uncertainty
For years, the size of the US public debt and the sovereign debt of major countries has been rising. This debt, which is approaching historic levels, is one of the sources of market confidence.
This is compounded by the uncertainty created by trade policies, particularly with the escalation of tariff wars and the focus on economic protectionism, and the exposure of a number of major countries to fluctuations in imports and exports.
In such a context, the double question becomes: How can a national currency (such as the dollar) continue to function as a safe haven while the country itself is mired in mounting debt? The answer lies, in part, in the flow of capital into risk-averse assets, and thus gold is returning to its leading role