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Gold hits all-time high of $3,977.19/oz

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Bullion may reach $4,300/oz over next 6 months, analyst

says

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China's central bank extends gold buying for 11th month

(Updates for Asia morning hours)

By Anmol Choubey

Oct 7 (Reuters) - Gold prices touched another record

high on Tuesday driven by strong investment demand amid broader

geopolitical and economic uncertainty with additional support

from expectations of further U.S. interest rate cuts.

Spot gold held its ground at $3,956.02 per ounce by

0745 GMT, after hitting an all-time high of $3,977.19 earlier in

the session.

U.S. gold futures for December delivery were steady

at $3,972.20.

"Strong ETF demand remains key, driven by 'FOMO' and eroding

trust in traditional safe havens," said Ole Hansen, head of

commodity strategy at Saxo Bank, adding that ongoing central

bank demand and lower funding costs were also supporting

bullion.

The White House on Monday eased back on President Donald

Trump's claim that layoffs of government employees were underway

due to the ongoing shutdown but warned that job losses could

occur as the impasse entered its seventh day.

The shutdown has postponed the release of key economic

indicators, forcing investors to rely on secondary,

non-government data to gauge the timing and extent of Fed rate

cuts.

Markets continue to price in a 25 basis-point cut at this

month's meeting and a similar-sized reduction in the December

meeting.

Non-yielding gold thrives in a low interest rate environment

and during economic uncertainties.

Gold has climbed 51% so far this year on strong central bank

buying, increased demand for gold-backed exchange-traded funds,

a weaker dollar and growing interest from retail investors

seeking to hedge amid rising trade and geopolitical tensions.

"I see gold reaching $4,300/oz over next 6 months. As the

USD is expected to continue to depreciate and the overall macro,

geopolitical is positive for gold price appreciation," said

Michael Langford, chief investment officer at Scorpion Minerals.

Goldman Sachs on Monday raised its December 2026 price

forecast for gold to $4,900 per ounce from $4,300.

China's central bank added gold to its reserves in September

for the 11th straight month, data from the People's Bank of

China showed.

Meanwhile, political upheaval in Japan and France gripped

currency and bond markets for a second day running on Tuesday.

Elsewhere, spot silver was down 0.9% at $48.11 per

ounce, platinum fell 1% to $1,609.04 and palladium

held steady at $1,317.50.