Gold on the Rise: Fresh Momentum at Record Highs

Gold on the Rise: Fresh Momentum at Record Highs
Expected rate cuts, weak dollar, central bank and ETF buying: the rally continues, though the weekly CCI signals caution.

On Monday, September 29, gold once again reached new highs, surpassing $3,800/oz and consolidating its bullish momentum.

Let’s explore why this rally has been so persistent — digging into the fundamental drivers, both geopolitical and financial — and how it fits into a broader landscape that also involves crypto.

Fundamental Drivers of the Rally

1. Rate cut hopes and dollar weakness
Investors are betting that the Fed will deliver further rate cuts by year-end, encouraged by softer-than-expected inflation data.
A weaker dollar makes gold more attractive to foreign buyers, boosting global demand.

2. Heavy ETF inflows and institutional demand
It’s not just monetary policy driving gold: large inflows into gold ETFs are acting as a catalyst.
At the same time, central banks continue to accumulate gold as part of reserve diversification.

3. Geopolitical uncertainty and systemic risk
Global events — tensions in the Middle East, conflicts, trade disputes, and pressure on central financial institutions — are fueling demand for safe-haven assets, with gold the classic benchmark.

A Note on Crypto: Evolving Correlations

• Analysts point out that the correlation between gold and Bitcoin has weakened, at times turning negative. This suggests investors increasingly treat crypto as a risk asset rather than “digital gold.”
• When gold rallies for macro and safe-haven reasons, crypto may not follow, being more sensitive to risk appetite and speculative flows.

In Summary & Practical Application

Gold is accelerating strongly, supported by a powerful combination of accommodative monetary policy, robust institutional demand, ETF inflows, and geopolitical uncertainty. While the weekly CCI indicates the market may be “overextended,” the underlying rally remains credible.

If you want to trade gold without managing all these factors manually, remember that 4FTinvest offers automated trading on gold through tested and high-performing algorithms, designed to systematically capture trends like the one we are witnessing.