By Antonio Di Giacomo, Financial Markets Analyst for LATAM at XS.com
October 14, 2025
“Gold continues to set new all-time highs, surpassing the $4,100-per-ounce mark during Monday’s North American session. This surge is supported by a combination of geopolitical and economic factors that have strengthened its position as the ultimate safe-haven asset. Global uncertainty, the prolonged U.S. government shutdown, and trade tensions among major powers have driven investors toward the precious metal.
One of the key elements behind this rally is the political deadlock in Washington, where the extended government shutdown has heightened risk perception across financial markets. The lack of consensus between Republicans and Democrats has stalled the release of key economic data and delayed critical fiscal decisions, fueling volatility and pushing investors to seek refuge in safe assets like gold.
On the international front, tensions between the United States and China have resurfaced. President Donald Trump reignited the trade dispute by threatening to impose 100% tariffs on Chinese imports, though he later softened his stance. Negotiations with President Xi Jinping were postponed but are expected to resume later this month in South Korea, an event that could mark a turning point in the trade conflict.
Meanwhile, in the Middle East, markets have cautiously welcomed news of an emerging peace agreement between Israel and Hamas, which has temporarily eased regional tensions. However, analysts warn that the situation remains fragile, and any breakdown in dialogue could reignite uncertainty, once again boosting demand for gold.
In financial markets, the U.S. dollar showed strength while yields on 10-year Treasury bonds declined, a move that typically benefits gold by reducing the opportunity cost of holding non-yielding assets. In this context, the precious metal has gained appeal as a hedge against inflation and market volatility.
According to estimates from Bank of America, Société Générale, and Goldman Sachs, gold could reach levels between $4,500 and $5,000 per ounce by 2026, driven by sustained growth in demand for gold-backed ETFs and official purchases by central banks. These institutions continue to diversify their reserves amid an increasingly uncertain financial landscape.
Meanwhile, investors remain focused on the Federal Reserve, whose upcoming FOMC meeting could set the tone for markets. The consensus points to a 25-basis-point rate cut, a move that could weaken the dollar and, consequently, further strengthen gold in the short term.
In conclusion, gold’s surge above $4,100 is not an isolated event but rather a reflection of a global environment fraught with political, economic, and monetary tensions. As major powers strive to stabilize their economies and central banks reinforce their reserves, gold continues to consolidate its role as a cornerstone of financial security. If analysts’ forecasts hold, the yellow metal could keep shining in the years ahead, setting new records in a world seeking stability amid uncertainty.”