Yellow metal rallies 2.9%, extends gains ahead of London session as investors seek shelter from global trade and fiscal risks…
Gold prices surged sharply on Monday, November 10, 2025, rebounding above the $4,100 per ounce mark in global commodities trading, as renewed safe-haven demand lifted the metal’s value following recent market volatility.
The yellow metal gained 2.88% on the day and extended its upward momentum into Tuesday, trading around $4,130 per ounce ahead of the London pre-market session on November 11. The rally has pushed gold’s month-to-date performance above 3%, marking a strong comeback after its late-October correction.
Gold had previously retreated from a record daily high of $4,355 per ounce to below $4,000, nearly testing the $3,900 level on October 29, in what analysts described as a “healthy pullback” following a more than 50% year-to-date surge that left prices in overbought territory.
Safe-Haven Demand Drives Rebound
Analysts at ANZ Bank said the latest rebound is being fueled by growing investor appetite for safe-haven assets, as uncertainty mounts over U.S. trade policy and the broader global economic outlook.
They noted that the U.S. Supreme Court has raised questions about the Trump administration’s emergency powers used to impose tariffs, potentially setting up a constitutional showdown that could delay decisions and unsettle markets for months.
President Donald Trump warned on Monday that overturning his tariff measures could cost the U.S. government more than $2 trillion in refunded duties, deepening fiscal uncertainty.
“Markets are likely to face months of uncertainty, with no ruling expected before the end of the year,” ANZ analysts said.
The ongoing U.S. government shutdown, which has postponed the release of several key economic data points, has also contributed to cautious sentiment.
Fed Liquidity Outlook Adds to Bullish Tone
Nicky Shiels, Head of Research at MKS Pamp SA, said the market is also responding to expectations that the Federal Reserve may inject additional liquidity to cushion the effects of the shutdown.
She noted that New York Fed President John Williams recently hinted at a possible balance sheet expansion to maintain market stability.
“Gold and silver like the prospect of more money being pumped into the system and higher asset prices,” Shiels explained.
As of London’s session open on November 11, gold was up over 57% year-to-date, maintaining one of its strongest annual performances on record.
Analysts Eye $4,500 Target by 2026
Investment bank UBS maintained a bullish long-term forecast, projecting gold prices could climb as high as $4,500 per ounce by 2026, a potential 150% upside in related valuations.
In its report titled “In Gold We Trust”, UBS said persistent U.S. inflation, geopolitical tensions, and divisions within the Federal Reserve are likely to weigh on the dollar, reinforcing investor interest in gold and silver.
The bank’s earlier forecast of $3,900 per ounce, issued in December 2024, materialised by early October 2025, lending further credibility to its latest projection.
“Sticky inflation, policy uncertainty, and dollar weakness are a recipe for sustained demand in safe-haven metals,” UBS analysts said.
Market Outlook
With inflationary pressures and monetary uncertainty lingering, traders expect gold’s momentum to remain supported in the short term. Analysts say that while volatility may persist, institutional investors are likely to continue increasing exposure to precious metals as a hedge against fiscal and geopolitical risk.
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