Gold benefits from the ongoing US government shutdown, resulting in a flight to safety. The bigger picture is the current buying of the yellow metal from central banks, most importantly in China. Beijing reported another significant increase in its Gold reserves in September, extending a long-running trend. Russia is not far behind.

Another factor is FOMO – traders rush to ride the wave, with some assuming the Gold rush will last forever.

Technical Analysis:

The hourly chart shows a strong bullish trend, with Gold now trading above the psychological $4,000 level and the upper boundary of a steep ascending channel. The RSI indicates it is overbought, suggesting a possible pullback to $3,980. This dip is likely to attract buyers, with additional support at $3,940. Above $4,035, further gains are expected towards $4,085.