1. Overview
Published on October 2, 2025, the article reports that spot gold is trading around $3,861.77/oz, with intraday highs nearing $3,895.09/oz.
The main drivers cited include a weakened U.S. dollar and increased demand for safe-haven assets, fueled by U.S. government shutdown concerns and weaker-than-expected labor data.
A growing FOMO (Fear of Missing Out) sentiment among investors is also accelerating the inflow of capital into gold, pushing prices higher.
If this trend continues, the article suggests that gold could surpass the $4,000/oz mark.
2. In-Depth Analysis
Supporting Factors
Weaker U.S. Dollar: As the dollar depreciates against other currencies, gold – priced in USD – becomes more affordable for foreign buyers, boosting demand.
Weak U.S. Employment Data: Private sector jobs fell by approximately 32,000 in September, sharply missing forecasts of a 50,000 gain. This raises expectations that the Fed will soon cut interest rates.
U.S. Government Shutdown: Political deadlock over the federal budget has resulted in a partial government shutdown, increasing investor demand for safe-haven assets like gold.
Fed Rate Cut Expectations: According to CME’s FedWatch tool, around 99% of the market anticipates a rate cut this month. Lower interest rates typically favor gold prices.
Psychological Factor – FOMO: Both retail and institutional investors, particularly in Western markets, appear to be chasing gold prices out of fear of missing further upside.
Risks & Limitations
While the article heavily emphasizes bullish drivers, it subtly points out that any sudden reversal—such as a USD rebound, unexpected rate hikes, or strong economic data—could challenge the uptrend.
There’s also the risk of excessive consensus: when too many investors are on the same side of the trade, any negative surprise could trigger sharp corrections.
3. Personal Take (Opinion & Recommendation)
The possibility of gold breaking above $4,000/oz is real, especially if the current drivers—USD weakness, Fed policy shift, and widespread FOMO—remain intact.
However, this outcome is far from guaranteed. Market sentiment can be fickle. A sudden pivot in fundamentals (e.g., stronger USD, hawkish Fed) could put serious downward pressure on gold.
As an investor, I wouldn’t go all-in at this stage. A balanced approach is better—perhaps allocating a portion of capital to ride the trend, while keeping most assets in safer or more risk-managed instruments.
I would also consider using options strategies (like spreads or collars) to benefit from the upside while limiting downside risks.
Finally, I’d watch macro indicators closely—especially U.S. interest rates, inflation data, and dollar strength—as they will likely dictate gold’s next major move.
— Yến Daily
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