Gold reached a new high of US$3,900 per ounce on October 6, 2025, extending its strong rally with a 50% gain so far this year.

After attaining an 11.9% increase in September, the metal now trades approximately US $4,000 record, as the dollar struggles to rebound from a 0.02% decline over the same period.

Analysts link the surge to expectations that the U.S. Federal Reserve will cut interest rates twice more before year-end, following its recent 0.25% reduction.

This move brought the federal funds rate down to 4.00%–4.25%, a level that favors borrowing for companies but makes U.S. assets less appealing to investors seeking higher yields.

As investors move away from dollar assets, the greenback weakens, boosting demand for safe-haven investments like gold.

The rally is also being supported by concerns over the U.S. government shutdown that began in early October, after Congress failed to approve a spending bill for the 2026 fiscal year.

The deadlock, driven by partisan disputes over federal spending, foreign aid, and healthcare subsidies, has further unsettled markets.

With rising uncertainty and a softer dollar, gold is enjoying one of its strongest years in decades, eyeing its record 133% gain of 1979.