Gold (XAUUSD) continues to rise amid political uncertainty
XAUUSD prices are rising for the third consecutive session amid political uncertainty in the US and Europe, reinforcing gold’s status as a safe-haven asset. The rate currently stands at 3,964 USD. Find more details in our analysis for 7 October 2025.
XAUUSD forecast: key trading points
- Traders forecast gold could reach 4,200 USD by the end of the year
- The lack of macroeconomic statistics from the US limits investors’ ability to assess the economy
- Analysts expect the Federal Reserve to cut rates by 25 basis points at the end of the month, with another reduction possible in December
- XAUUSD forecast for 7 October 2025: 4,030
Fundamental analysis
XAUUSD prices have been rising for the third consecutive session, reflecting strong demand for gold as a safe-haven asset. Prices are supported by the ongoing US government shutdown and the political crisis in France.
US federal agencies have remained closed since last Wednesday, as Congress failed to reach an agreement on a funding extension. According to traders, gold’s rally is fuelled by a combination of fundamental and situational factors, strengthening expectations of continued upward momentum. Many market participants now project that gold could reach 4,200 USD by year-end.
The absence of US macroeconomic statistics due to the shutdown limits investors’ ability to evaluate the economic outlook. However, analysts expect the Federal Reserve to lower its policy rate by 25 basis points later this month, with another rate cut potentially following in December.
XAUUSD technical analysis
XAUUSD quotes continue to move within an ascending channel, with the current decline appearing to be a corrective pullback.
Prices remain above the Moving Average, where the asset finds ongoing buyer interest. The Stochastic Oscillator is rebounding from an ascending support line and turning upwards, signalling a likely resumption of growth.
The XAUUSD forecast for today suggests a rebound from the 3,955 level and movement towards the upper boundary of the channel near 4,000. A breakout above 3,985 could strengthen bullish momentum, targeting 4,030.
Summary
Gold maintains a strong bullish impulse, with expectations of Fed policy easing combined with political risks creating favourable conditions for new highs. The forecast for XAUUSD indicates a high probability of a rebound from the current support level and continued growth towards 4,030 USD.