The price of Gold (XAUUSD) has reversed downward to $3,807 per troy ounce at the start of European trading on Tuesday (September 30, 2025). This decline is likely due to profit-taking actions following Gold’s previous record high of $3,871 per troy ounce.
Since Monday, the price of Gold surged over $110 leading up to its peak. Such a rapid increase clearly enticed investors in long positions to liquidate their holdings and realize their profits.
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Furthermore, it appears the conflict in Gaza may be nearing a conclusion after US President Donald Trump announced plans to end the Israeli conflict in Gaza, which have been accepted by Israeli Prime Minister Benjamin Netanyahu.
Moreover, attention continues to focus on the potential risk of a temporary government shutdown in the United States. Currently, Congress has until the end of September 30 to reach a budget agreement and avoid a shutdown. However, the chances are slim as Democratic leaders have indicated significant disagreements with their Republican counterparts.
In the event of a shutdown, hundreds of thousands of government employees could be furloughed. Consequently, economic data releases might be delayed, making it difficult for market participants to gauge the state of the US economy.
Given the current unfavorable economic conditions in the US, particularly the weakening labor market, a shutdown could exacerbate the situation. This scenario is likely to put pressure on the US dollar, while Gold, considered a safe haven asset, may become increasingly sought after by investors.
