Gold record run continues beyond $4,100

Gold preserve its bullish momentum to start the week and trades at a new record-high at around $4,100. The political drama in France, the uncertainty surrounding the US-China relations and the impact of the government shutdown allow Gold to remain attractive as a traditional safe-haven asset.

XAU/USD Technical Overview

From a technical point of view, the XAU/USD pair is bullish. In the daily chart, technical indicators resumed their advance within overbought levels after correcting extreme conditions, still reflecting that buyers are in control. Meanwhile, the pair develops far above all its moving averages, with the 20 Simple Moving Average (SMA) far above the longer ones and at around $3,841.

The near-term picture is pretty similar. In the 4-hour chart, the Momentum indicator aims firmly north within positive levels, while the Relative Strength Index (RSI) indicator advances at around 70, although with a limited upward slope. Meanwhile, the XAU/USD pair extends its recovery above all its moving averages, with a mildly bullish 20 SMA currently at around $4,026.

Support levels: 4,100.00 4,086.20 4,071.55

Resistance levels: 4,117.00 4,130.00 4,150.00

Fundamental Overview

Spot Gold's run into unexplored territory continues on Monday, with the bright metal overcoming the $4,100 threshold early in the American session. Multiple factors are pushing the safe-haven metal higher.

On the one hand, the United States (US) government shutdown continues, with a resolution to the stalemate still out of the picture. The country is celebrating a holiday, Columbus Day, which further delays any agreement in the Senate. On the other hand, US President Donald Trump revived trade-war concerns late on Friday, accusing China of “strange” behaviour and threatening fresh, massive tariffs on Chinese imports. Trump was scheduled to speak with his Chinese counterpart, Xi Jinping, in the coming days, but the talks have been postponed.

Right now, the US President’s attention is on the Middle East. The first stages of a peace agreement between Israel and Hamas are underway. Hamas has freed the remaining hostages, hostilities have been interrupted, and people are slowly returning to Gaza. The peace could be fragile, but it is a major Trump victory.