Gold Prices Rise to $4,080 Amid Weaker U.S. Data and Dollar Pullback

By Mohanad Yakout, Senior Markets Analyst, Scope Markets.

UAE – 10 October 2025

Gold prices extended gains on Monday, climbing to around $4,080 per ounce, marking a two-week high as softer U.S economic data and a weaker dollar revived safe-haven demand. The move underscores renewed investor caution amid persistent uncertainty surrounding U.S fiscal negotiations and delayed economic releases.

The latest U.S PMI figures slipped below 50, signaling contraction across key sectors and reigniting concerns over slowing growth momentum. At the same time, the U.S. dollar index edged 0.1% lower, easing pressure on dollar-denominated assets and lending support to bullion. Together, these factors reinforced gold’s appeal as a defensive hedge against economic weakness and policy uncertainty.

Market sentiment remains sensitive to developments in U.S government shutdown resolution talks, which continue to dominate short-term risk appetite. Prolonged delays in key data publications due to the political impasse have further clouded the economic outlook, keeping volatility elevated across major asset classes. Investors appear to be positioning cautiously, favoring gold as a store of value amid mixed macro signals.

From a technical perspective, the $4,000 level has emerged as a crucial psychological and structural support. Sustained price action above this threshold has encouraged a near-term retracement higher, with momentum indicators pointing to continued buying interest while overbought conditions remain limited. Immediate resistance is seen near $4,100–$4,120, where profit-taking could briefly cap upside momentum before any potential extension higher.

Overall, gold’s latest rally reflects a combination of macro-driven risk aversion and technical resilience. As markets await clarity on U.S fiscal developments and broader economic direction, gold may continue to benefit from its dual role as both a hedge against uncertainty and a tactical trade in a volatile environment.