In a powerful and paradoxical display of stubborn strength, gold is holding firm near its all-time record high, a resilient and defiant stance in the face of a wave of good news that should, in theory, be sending it tumbling.
The precious metal is brushing off signs of an easing in global trade tensions and the growing hope of a US government reopening, a clear and potent signal that the foundations of its ferocious rally are far deeper than the daily news cycle.
The market is now caught in a fascinating tug-of-war between short-term optimism and a long-term undercurrent of deep-seated anxiety.
A ninth week of gains, a hint of exhaustion
The precious metal, which has now registered an incredible nine straight weeks of gains, surged as much as 3.1 percent on Monday to hit a new peak of $4,381.52 an ounce.
But this latest leg up has pushed the rally into technically “overbought” territory, a sign that the relentless ascent that began in August may be vulnerable to a pullback.
The market is currently weighing a series of seemingly positive developments. President Donald Trump has stated that the US will “be fine” with Beijing as the two sides prepare to return to the negotiating table.
At the same time, a top White House official has suggested the market-roiling US government shutdown might finally end this week.
But for gold, it seems, the good news is not good enough.
The bedrock of the bull market
The resilience of the rally is a testament to the powerful, structural forces that have been driving it all year. Gold’s stunning 65 percent-plus gain in 2025 has been underpinned by a potent cocktail of factors that transcend the daily headlines.
Relentless and systematic buying from central banks, coupled with powerful and sustained inflows into gold-backed exchange-traded funds, have created a formidable and unwavering base of support.
This institutional demand has been amplified by a surge in the metal’s traditional role as a safe haven, a fortress against a world of rising geopolitical tensions, soaring fiscal debt levels, and unprecedented threats to the independence of the US Federal Reserve.
The silver squeeze: A sister metal’s surge
The bullish story is not confined to gold. Its sister metal, silver, has been on an even more spectacular run, surging more than 80 percent this year.
Its rally has been fueled by many of the same macro factors, but it has been supercharged by a historic and ongoing squeeze in the critical London market, a development that has sent traders scrambling to ship physical metal to the UK capital to ease the tightness.
For now, the precious metals are a world unto themselves, their powerful bull market seemingly divorced from the ebbs and flows of the daily news cycle.
The foundation of this rally was not built in a day, and it appears it will not be broken by a single dose of good news.
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