Gold has had a very good year.
That sentiment couldn’t have been clearer on Tuesday, October 7, when the precious metal reached a new milestone: $4,000 per ounce.
As of early Wednesday, gold was up more than 53% year to date.
That’s significantly higher than the growth the major stock indices saw over the same period. The Dow Jones Industrial Average is up 9.93% this year, the S&P 500 is up 14.42% and the Nasdaq Composite is up 18.19% as of market close on Tuesday.
As a so-called safe haven, gold has benefited from a number of things this year, including a weakened dollar and an unpredictable economy. The latter is especially true since the US government shutdown on October 1.
That Wednesday morning saw gold reach new all-time highs, with spot gold and US gold futures reaching $3,894 and $3,922 respectively.
Gold has continued to rise over the past week, reaching a high of $4,050 today.
Yes, but will it stay that way?
It’s clear that the US government shutdown has, at least so far, been a coup for gold, but for how much longer? Of course, there’s no guarantee either way, especially since the end of the shutdown isn’t in sight yet.
Financial experts are divided on their predictions.
Goldman Sachs has taken a bullish approach, raising its estimated gold forecast for December 2026 from $4,300 to $4,900 per ounce.
“We still view net positive risks to our upgraded gold price forecast as diversification from the private sector into the relatively small gold market could lift ETF holdings above our rate-implied estimate,” Goldman said at the meeting. Monday announcementaccording to Reuters.
Meanwhile, Bank of America took a much bearish stance on Monday, Fortune reported. Bank of America technical strategist Paul Ciana warned of an increased “risk of correction.” Ciana stated that factors such as momentum buying and overbought signals mean that gold’s meteoric rise could be coming to an end.
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