Friday, October 10, 2025 – Gold prices remain under pressure after briefly breaking above the psychological $4,000 level earlier this week, with profit-taking activity capping further upside momentum.
The precious metal slipped another 0.6% on Friday to $3,952, extending Thursday’s decline in US trading. Analysts attribute the move primarily to investors locking in gains following gold’s climb to a new milestone. Despite the setback, bullion is still poised to close the week higher, marking its eighth consecutive weekly advance—the strongest streak since early 2025.
Market Overview
Gold retains a mild negative bias for the second straight day, although selling pressure has been limited. The US Dollar has retreated slightly from a two-month peak, providing a tailwind for the metal. Persistent expectations of Federal Reserve rate cuts, along with concerns over a prolonged US government shutdown and ongoing geopolitical risks, continue to underpin demand.
Fundamental Drivers
Trading in Asia on Friday suggested buyers remain positioned to extend the record-setting rally. Sentiment across global markets remains cautious:
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US Government Shutdown: Lawmakers are not expected to resume negotiations until next week as the Senate adjourns for a long holiday, raising concerns about economic disruption.
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Federal Reserve Outlook: New York Fed President John Williams reiterated support for further rate cuts this year, while San Francisco Fed President Mary Daly confirmed that additional easing remains on the table as part of a risk management approach.
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Global Markets: Declines in Asian equities and a pause in the dollar’s uptrend have added to gold’s appeal as a safe-haven asset.
Looking Ahead
Attention now shifts to upcoming University of Michigan Consumer Sentiment and Inflation Expectations data, which could provide fresh signals on policy direction. Markets are also watching for the release of the September CPI report, which the Bureau of Labor Statistics has pledged to publish despite the shutdown. However, the data—originally due on October 15—is likely to face delays.
For now, gold remains supported by a combination of macroeconomic uncertainty, central bank dovishness, and risk aversion, even as short-term profit-taking trims momentum near the $4,000 threshold.