Gold Daily News Update 3 Oct 2025 | Gold Investment Series

lipkarlock Friday, October 03, 2025

As of October 3, 2025, the global gold market is experiencing high volatility, though the underlying trend remains strongly bullish. Gold has set new record highs this week, reaching close to $3,900 per ounce, and is on track for its seventh consecutive weekly gain. This stellar performance has seen gold prices jump by approximately 47% in 2025.

Key factors influencing the gold market:

US Government Shutdown: The ongoing US government shutdown, now in its third day, is creating a climate of uncertainty. This has delayed the release of crucial economic data, including the non-farm payrolls report, and is prompting investors to seek out the safe-haven appeal of gold.
Monetary Policy and Interest Rates: The Federal Reserve is widely expected to continue its rate-cutting cycle. Following a rate cut in September, market speculation is high for another 25-basis-point cut this month and a further one in December. Lower interest rates typically make non-yielding assets like gold more attractive.
Geopolitical Tensions and Economic Uncertainty: Ongoing geopolitical conflicts, combined with broader economic concerns and a weakening US dollar, are driving demand for gold as a hedge against risk. The Governor of the Reserve Bank of India, Sanjay Malhotra, has even suggested that gold is now acting as a new barometer for global uncertainty, similar to how crude oil has in the past.
Central Bank and Investor Demand: Central banks globally have been consistent buyers of gold, with strong purchases expected to continue throughout 2025. Additionally, investor demand, particularly through gold-backed Exchange Traded Funds (ETFs), has seen significant inflows, especially in the US and China.

Market Outlook and Price Action:

While the long-term outlook for gold remains positive, with some analysts forecasting a push towards the $4,000 per ounce mark by year-end, the market on October 3 has seen a slight pullback.
Gold prices have cooled from their historic highs as investors engage in profit-booking. This is seen as a short-term correction within a larger bullish trend.
For intraday traders, a "sell on rise" strategy has been recommended near key resistance levels, but analysts caution this is a high-risk, counter-trend approach.
The overall sentiment suggests that any dips in price are likely to be met with renewed buying interest from central banks and investors, limiting the potential for a major correction.