Monday, October 6, 2025 — Gold Forecast and Analysis
Gold Market Overview
- Overall Gold Trend: Strongly Bullish
- Support Levels: $3,855 – $3,800 – $3,730 per ounce
- Resistance Levels: $3,910 – $3,950 – $4,020 per ounce
Trading Signals for Today
- Sell Setup: Sell gold near resistance at $3,930, target $3,700, stop-loss $3,980.
- Buy Setup: Buy gold near support at $3,770, target $3,940, stop-loss $3,730.
Technical Analysis: XAU/USD Gold Price Outlook
Gold prices remain in a powerful bullish trend, with the next major target for buyers seen near $4,000 per ounce.
Recent data shows spot gold climbing to $3,897 per ounce, marking a new historical high for the yellow metal.
The absence of U.S. job data at the end of last week has allowed bullish momentum to continue, while the ongoing U.S. government shutdown has added further support to safe-haven demand. Traders largely ignored overbought signals across technical indicators, focusing instead on the strong macroeconomic backdrop favoring gold.
Analysts’ Outlook and Market Sentiment
Market analysts remain firmly optimistic about gold’s performance. Following another strong week of gains, gold has now risen for seven consecutive weeks, declining in only one since late July.
Factors supporting the rally include:
- The U.S. government shutdown and uncertainty over fiscal policy.
- Renewed discussions in Europe about utilizing frozen Russian reserves.
- Persistent trade tensions across the region.
Gold’s nearest support stands around $3,800, while $4,000 per ounce represents a key short-term target in the bullish channel.
Trading Insights and Tips
Dear traders, remember that gold remains one of the world’s premier safe-haven assets, thriving in times of global uncertainty.
With the current economic and geopolitical climate, the bullish trend is expected to persist, supported by investor demand for stability and value preservation.
Will Gold Prices Decline Soon?
Our analysis suggests that gold may continue rising through the new trading week.
However, a few potential factors could temporarily slow its rally:
- A resolution to the U.S. government shutdown
- A peace agreement in Gaza
- The ongoing slowdown in Chinese gold purchases
Even so, these factors are unlikely to reverse the broader uptrend, as they were not the main catalysts behind the recent surge.
Market experts also believe the Federal Reserve’s internal employment tracking is more reliable than government data, so any data disruptions from the shutdown are unlikely to affect policy direction.
While dovish comments from the Fed briefly caused volatility last week—such as remarks by Dallas Fed President Lori Logan hinting at cautious rate adjustments—gold quickly regained momentum.
Most metals analysts now forecast further upside in gold prices this week, while very few expect any meaningful decline. A small number anticipate neutral movement as the market consolidates near its record highs.