Gold is rallying towards the $4,000 level, trading around $3,960. The H1 chart shows that the price has broken through a key resistance level and continues to move higher, following a clear bullish trendline.

Analysts link this upward momentum to ongoing de-dollarization trends and the U.S. government shutdown, which has boosted demand for safe-haven assets.

Shutdown, De-Dollarization Drive Gold Rally

Gold prices climbed past $3,900 on Monday, extending a multi-week rally driven by the US government shutdown and global moves away from the dollar. Traders are now focused on whether the metal can sustain its momentum.

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Dilin Wu, Research Strategist at Pepperstone, said: “Gold bulls have surged past $3,900, fueled by the US government shutdown and global ‘de-dollarization.’ Traders will be watching government funding developments and Fed speeches this week.”

Wu noted that “holding above $3,900 is key.” The recent breakout, which came less than ten days after prices first surpassed $3,800, signals strong bullish momentum. However, she cautioned that a drop below $3,855 could “intensify short-term retracement pressures.”

The shutdown has delayed key data, including the nonfarm payroll report. Wu said this has created a “data vacuum,” boosting gold’s safe-haven appeal. Markets now fully expect a Fed rate cut in October, with a 90 percent chance of another in December.

Political uncertainty continues to support gold. Wu said that “neither party has demonstrated clear cross-party support for government funding proposals,” and the ongoing stalemate “has put pressure on the dollar’s credibility.” She added that central banks are “steadily increasing their gold reserves, using ‘de-dollarization’ to hedge risks.”

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Wu warned that a quick resolution to the shutdown or hawkish Fed comments could trigger a short-term correction. “Once the government reopens, the nonfarm report is likely to be published quickly, improving policy visibility and potentially putting short-term pressure on gold,” she said.

Gold Surges Amid Unheeded Market Warning

However, according to Peter Schiff, Chief Economist and Global Strategist, Founder of SchiffGold, the rally has drawn limited market attention despite its scale and proximity to the $4K mark.

“Gold is at a new record high, trading above $3,950. It’s amazing how little attention this rally has received, considering the price is now less than $50 below $4,000,” he said.

The comment reflects concern that markets may be overlooking the broader signals behind gold’s surge, including persistent fiscal uncertainty and weakening confidence in major currencies. “But more important than the rise itself, is the significance of the warning that’s going unheeded,” Schiff added.