Gold pierces $4,000 while Europe stocks test fresh highs

• Gold surges past $4,000
• European stocks push higher despite political headwinds

Gold is at it again. The precious metal continues to attract investor attention as it powers through key levels, this time the $4,000 mark. The momentum is well supported, driven primarily by expectations of further easing around the globe. The leadership change in Japan, which has seen deficit-dove Sanae Takaichi take the reins of the ruling Liberal Democratic Party, has served as a new boost this week. A softer dollar, persistent central bank buying and elevated geopolitical risk continue to underpin the move. With fiscal policy remaining expansionary in many economies despite above-target inflation, dips are still finding willing buyers—though the technical picture argues for rising volatility after a historic breakout. Beyond near-term momentum, the medium-term case for bullion still leans positive: tolerance for above-target inflation, swelling public deficits, ongoing de-risking in FX reserves, and a dense geopolitical calendar suggest pullbacks may remain shallow unless policy surprises jolt real yields sharply higher.

Gold (XAU/USD) daily chart

Past performance is not a reliable indicator of future results.

Meanwhile, European equities are also on the move this morning. The Stoxx 600 is up 0.4% at the start of the European session after a tough start to the week following another prime-ministerial resignation in France. The index is pushing past 570 to breach a new all-time high after a solid start to the month of October. The momentum seems to be coming from the steel sector after the European Commission proposed cutting tariff-free steel import quotas by almost half to preserve the industry within the bloc. News about a $1.1 billion plan to ramp up Ai in key industries should help sentiment toward Europe’s digital and industrial complex.

The DAX 40 is also attempting to break higher but faces headwinds after BMW fell in early trade, following a cut to its 2025 earnings outlook amid weaker China trends and revised U.S. tariff assumptions. Fresh data also showed German industrial production fell 4.3% m/m in August, the steepest drop in over three years—another drag on cyclicals.

STOXX 600 daily chart

Past performance is not a reliable indicator of future results.

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