The Reserve Bank of New Zealand (RBNZ) announced its interest rate decision on Wednesday morning following its October 8 meeting, cutting the official cash rate by 50 basis points to a range of 2.50% — the lowest level since July 2022. The move exceeded market expectations, which had projected a 25-basis-point cut, marking the eighth rate reduction since the central bank began its monetary-easing cycle in August 2024.

The RBNZ stated that its Monetary Policy Committee “remains open to further reductions in the official cash rate as needed to ensure inflation stabilizes sustainably near the 2% midpoint of the target range over the medium term.”

• This statement is considered bearish for the New Zealand dollar.

Ethereum prices declined on Tuesday as traders engaged in profit-taking, even as demand for most risk assets remained strong due to continued inflows into exchange-traded funds (ETFs).

Market sentiment was dampened after the US Senate failed for the fifth time to pass a bill extending government funding through November 21.

Republicans still need the backing of at least eight Democrats to reach the 60-vote threshold required to approve legislation allowing federal funding.

As a result, US President Donald Trump criticized congressional Democrats in a post on Truth Social, saying he was willing to work with them on healthcare and other issues — provided they agree to reopen the government.

Meanwhile, investors continue to expect a 25-basis-point rate cut at the Federal Reserve’s upcoming policy meeting on October 28–29, followed by another similar reduction in December.

Ethereum

As of 20:30 GMT, Ethereum dropped 5.2% to $4,464.8 on CoinMarketCap.

Gold prices rose during Tuesday’s trading session, hitting a new all-time high amid continued central bank and ETF buying, as well as strong safe-haven demand fueled by the ongoing US government shutdown and expectations of Federal Reserve rate cuts.

Market sentiment weakened after the US Senate failed for the fifth time to pass a bill that would fund the government through November 21.

Republicans still need the support of at least eight Democrats to reach the 60-vote threshold required to approve legislation allowing federal funding.

As a result, US President Donald Trump criticized congressional Democrats in a post on Truth Social, saying he was ready to work with them on healthcare or other issues — provided that they agree to reopen the government.

The precious metal has gained 51% since the start of the year, supported by a combination of factors — most notably expectations of Fed rate cuts, central bank purchases, inflows into gold-backed ETFs, and a weaker dollar.

Investors currently expect a 25-basis-point rate cut at the Federal Reserve’s policy meeting scheduled for October 28–29, with another similar cut anticipated in December.

Meanwhile, the US Dollar Index rose 0.5% to 98.5 points as of 20:04 GMT, after touching a high of 98.5 and a low of 98.09.

As for trading levels, spot gold climbed 0.7% to $4,004.8 per ounce at 20:05 GMT.

Gold has once again taken center stage in global markets, with prices surging to unprecedented levels — nearing the $4,000 per ounce mark on Tuesday — a threshold that could reshape investors’ perception of safe-haven assets.

In early trading, spot gold rose sharply by 1.9% to around $3,948 per ounce, extending its climb toward new record highs. The broad and rapid rally was driven by deep economic uncertainty, falling bond yields, and a renewed rush toward financial safety.

SPDR Gold Shares (GLD) — the world’s largest gold-backed ETF — jumped to $364.38, signaling massive institutional inflows and revived interest from global investors. Analysts say this is no random move, but a sign that gold is reclaiming its place as the world’s preferred hedge against turmoil.

Market strategists describe this as a “perfect storm” of factors: expectations of interest rate cuts, a weaker US dollar, and record central bank purchases — all combining to create ideal conditions for an explosive rally. Investors now see gold not merely as a commodity, but as a strategic long-term wealth preservation tool.

Expectations of rate cuts from the Federal Reserve have strengthened demand for the metal, as traders bet on a looser monetary policy before year-end, while the dollar’s weakness made gold more appealing to international buyers.

Central banks have also played a key role, with continued buying from China, India, and other nations lifting prices — a trend analysts expect to persist in the near term.

From a technical standpoint, the outlook remains bullish. Goldman Sachs raised its 2026 price target to $4,900 per ounce, citing sustained safe-haven flows and ample global liquidity. Market strategists believe gold could soon breach $4,000 if current conditions hold.

For investors, this rally brings both opportunities and risks: gold thrives in low-rate, uncertain environments, but could face short-term corrections if monetary policies shift unexpectedly or inflation cools faster than anticipated.

ETF activity reflects the powerful momentum — GLD rose 1.87%, while IAU climbed 1.90% in early trading. Traders closely watch these funds as gauges of investor sentiment.

The key drivers ahead include Fed commentary, central bank purchases, safe-haven demand, and post-shutdown US economic data — any of which could accelerate or slow the rally.

As prices approach historic levels, market participants are watching developments closely. Analysts and investors agree that this surge is powered by a convergence of economic uncertainty, monetary policy expectations, and robust global demand.

With gold nearing $4,000, the coming weeks could mark one of the most closely watched upward runs in years.

Why is gold rising so fast again?

The recent surge stems from overlapping economic and political developments, as investors seek safety amid growing fears about global growth, inflation, and geopolitical tensions.

A key driver is the Fed’s anticipated policy shift toward rate cuts. When interest rates fall, gold becomes more attractive because it doesn’t lose value to yield-bearing assets like bonds. With inflation remaining above target in many economies, real interest rates stay low — strengthening gold’s appeal as a store of value.

At the same time, the weaker US dollar has made gold cheaper for foreign buyers, spurring renewed global demand. This mix of lower yields and a soft dollar has placed gold in one of its strongest uptrends in years.

What role are central banks playing in this rally?

Massive central bank purchases — particularly from China and other major economies — have been pivotal in driving prices higher. Analysts warn this trend is likely to persist, with forecasts placing gold near $4,900 per ounce by 2026.

Nations such as China, India, and Turkey have steadily built their gold reserves throughout 2025 as part of a broader effort to hedge against currency risks, trade sanctions, and financial instability. This ongoing official-sector demand has provided the market with long-term structural support.

Experts note that central bank buying acts as a stabilizing force because these institutions invest over multi-year horizons, keeping prices supported even when short-term traders take profits.

The global shift toward gold-backed reserves is now seen as a hedge against both inflation and geopolitical risks — reinforcing gold’s status as a strategic crisis asset.

Is fear and uncertainty driving gold’s comeback as a safe haven?

Yes — and the trend appears to be accelerating. Political instability and economic shocks across multiple regions have once again pushed investors toward gold.

Leadership changes, shutdown threats, and recession risks have all rattled market confidence. Each dip in risk appetite sends gold higher.

Analysts note that gold performs best in times of uncertainty and declining trust in traditional assets. Stock market volatility, shifting bond yields, and currency weakness are all steering investors toward precious metals.

This mix of caution and global slowdown continues to sustain strong demand from both retail and institutional buyers.

Are large investors and funds joining the gold rush?

Yes. Major institutions are pouring money back into gold via ETFs and other vehicles, signaling that the rally is supported by deep capital flows, not just retail speculation.

Investment funds are increasing exposure to gold as part of broader hedging strategies, especially with high stock valuations and ballooning global debt levels prompting a shift toward hard assets.

ETFs tracking gold have seen multi-billion-dollar inflows over the past month — what analysts call the “fear premium,” or the extra price investors pay for safety in times of anxiety.

This institutional wave has strengthened gold’s technical position, with traders now targeting the key psychological threshold of $4,000 per ounce — a level that could open the door to further gains.

Can gold break $4,000 — or is a correction coming?

Gold is now testing critical resistance near $4,000 — a level that could determine whether the metal continues its climb or pauses for consolidation.

If momentum persists, analysts expect prices to reach between $4,100 and $4,300 per ounce in the short term, with some projections placing the longer-term target at $4,900 by late 2026 — supported by central bank buying and easier monetary policies.

However, downside risks remain: if the Fed delays rate cuts or inflation cools faster than expected, gold could weaken temporarily. A stronger dollar or renewed risk appetite might also trigger mild profit-taking.

Still, the broader outlook remains bullish. As long as real yields stay negative and economic uncertainty persists, gold’s uptrend appears well anchored.

What’s next for gold in the coming months?

In the near term, investors should watch Fed comments, inflation data, and ETF flows — all key determinants of whether gold sustains its climb or enters a consolidation phase.

Current support zones lie between $3,850 and $3,900 per ounce, which could present buying opportunities if short-term pullbacks occur.

A decisive break above $4,000 could signal the start of a new long-term rally that draws even greater institutional participation.

Gold remains the best-performing asset of 2025, outpacing stocks, bonds, and even cryptocurrencies. For investors, it continues to embody safety, stability, and protection against inflation — the same reasons it has served as a timeless store of value for centuries.