Although concerns about the potential default of U.S. regional banks have subsided, worries over another possible U.S. government shutdown have resurfaced. This has driven gold prices sharply higher last night, pushing gold back to its all-time high region of $4,381 per ounce.
The U.S. Senate has yet to reach a final agreement on the budget bill and has failed for the 11th time to bring the government back into operation. The Democratic Party remains unwilling to compromise with Trump’s policies, leading the discussion into a deadlock. Investors now predict that the U.S. government could face a shutdown lasting 29 days or more.
If this happens, a prolonged U.S. stock market closure could trigger a strong capital flow into gold, resulting in a sharp rally and potentially driving prices to new all-time highs.
Technical Analysis:
In the medium term, gold is forming a double-top pattern on the H4 timeframe, suggesting a potential strong correction before continuing its next bullish wave. This move could break through the 4,38x all-time high region and push gold prices toward 4,4xx or even 4,5xx dollars per ounce by the end of 2025.
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