Cairo – Al Arabiya Business
Noureldin Mohamed, Chairman of Target Investment Group, stated that the recent surge in global gold prices is not limited to the potential threat of a U.S. government shutdown but is influenced by broader global economic developments.
In an interview with Al Arabiya Business, he explained that the possible shutdown — which may occur if the U.S. debt ceiling is not raised — is closely linked to the ongoing rise in gold prices. However, other global economic factors are also playing a central role in pushing prices to record highs.
Key Drivers Behind Gold’s Rally
Mohamed highlighted that weak European economies, particularly France and Germany, along with the sharp decline of the U.S. dollar due to inconsistent political decisions and repeated remarks by President Donald Trump, have driven investors toward gold and precious metals as safe havens.
He added that today’s data showed a 4% increase in pending home sales, compared to expectations of only 0.3%, reflecting a loss of confidence in the dollar and a shift toward safer assets.
Gold, Interest Rates, and the Dollar
The Chairman explained that lower interest rates reduce the appeal of the U.S. dollar, pushing investors to seek alternatives like precious metals — especially amid weak European economies that limit the strength of the euro and Swiss franc as investment options.
He added that lower mortgage rates have also boosted gold demand, and further rate cuts are expected to support the U.S. economy and prevent potential stagflation.
Outlook: $4,000 Gold in Sight
Mohamed concluded that precious metal prices are unlikely to decline, even if the U.S. government avoids a shutdown, predicting that gold could soon reach $4,000 per ounce.
He emphasized that this year’s rally has been driven by geopolitical tensions, political uncertainty, U.S. tariffs, and central banks’ increasing gold purchases. The potential U.S. government shutdown remains under close watch and is expected to continue supporting gold prices in the coming sessions.