Spot gold extended its rally for the eighth consecutive week on Friday October 10th, trading at $3,994.05 per ounce rising by $17.43, while spot silver is trading at $50.31 per ounce, up $1.10. Gold’s advance was underpinned by growing expectations of further Federal Reserve rate cuts after September’s policy minutes revealed that officials acknowledged elevated risks to the U.S. labor market, justifying additional monetary easing despite persistent inflation pressures. Meanwhile, silver’s surge has been fueled by acute supply shortages in the London bullion market, where high safe-haven demand and industrial buying have driven spot prices above those in the futures market. Both metals have benefited from ongoing geopolitical tensions—including a newly approved ceasefire in Gaza—and a U.S. government shutdown that has delayed key economic data releases, reinforcing their status as crisis hedges.
In recent days, the Financial Times highlighted a landmark moment for gold when the spot price breached the $4,000 threshold for the first time in history on October 8, driven by a surge of investor “FOMO” amid dwindling alternatives for portfolio protection. The FT article “Gold price tops $4,000 for first time” underscored how sustained central bank buying and robust ETF inflows compounded safe-haven flows as investors braced for slowing global growth. Technical analysts cited in the piece noted that this psychological barrier break could trigger fresh momentum, though some cautioned that profit-taking might lead to short-term volatility. The article also explored shifting investor psychology: rising gold premiums in Asian markets and record Western retail offtake suggest broad-based participation, while the metal’s non-yielding nature continues to attract those seeking insulation from fiscal and currency risks.
