Gold – shallow pullback below new record peak viewed as setup for another push into uncharted territory

Gold surged to a new all-time high of \$3871 on Tuesday, extending Monday’s sharp 2% rally, which marked the biggest daily gain since May 6.

The move was fueled by intensifying concerns over a potential US government shutdown on October 1 and growing expectations of further Fed rate cuts, which drove a fresh wave of safe-haven demand.

The metal has extended its broader steep uptrend since August, following a three-month consolidation, with September’s strong acceleration delivering gains of around 11% for the month.

A worsening geopolitical backdrop, fragile conditions across major developed economies, and deepening political crises in several countries continue to bolster demand for safety.

The pace of the rally highlights the intensity of bullish sentiment, with gold rising from \$3700 to \$3800 in just six days, and pushing close to \$3900 within only two more sessions. Bulls are now targeting the symbolic \$4000 level, with expectations it could be reached before year-end.

Monday’s retreat from record highs can be seen as a limited correction within a powerful rally, serving as positioning for another leg higher. Initial and solid support around \$3800 contained the pullback, and today’s rebound has already retraced much of that dip, keeping the broader bullish bias intact.

Focus remains firmly on the upside, with \$3871 as the immediate barrier ahead of the psychological \$3900 level. Still, traders remain cautious on developments around the US government and the risk of month-end profit-taking.

Res: 3871; 3880; 3900; 3920
Sup: 3841; 3830; 3820; 3800