Gold Tops $4,000, Sets Record as Investors Seek Safety
Gold has crossed $4,000 per ounce for the first time in history. The surge shows investors rushing toward safer assets amid rising global risks. Expectations of more rate cuts by the US Federal Reserve have fueled this rally.
Spot gold gained 0.7% to $4,011.18 per ounce early Wednesday. December futures also rose 0.7%, touching $4,033.40. Gold has jumped 53% this year after gaining 27% in 2024. Analysts believe investor confidence and central bank demand are key to this historic climb.
Drivers of the Rally
Investors expect lower interest rates soon. Political and economic instability continues to push demand for gold. Central banks are adding to their reserves, while gold-backed ETFs report strong inflows. The weak US dollar further supports prices.
Independent trader Tai Wong said, “Traders now aim for $5,000. Debt levels, diversification, and a soft dollar will keep gold rising.”
The US government shutdown has also strengthened gold’s appeal. The delay in economic data has forced traders to depend on alternative indicators to predict Fed actions. Markets now expect a 25-basis-point cut this month and another in December.
Rising Demand
KCM Trade Chief Analyst Tim Waterer said, “Uncertainty always drives gold higher.” He added that profit-taking near $4,000 may cause brief dips, but the long-term outlook stays strong.
Political unrest in France and Japan has added to global caution. Investors continue to view gold as a shield against financial turbulence. Analysts forecast strong demand through 2026. Major banks, including Goldman Sachs and UBS, have raised their gold targets.
Other precious metals also advanced. Silver rose 1.3% to $48.42 per ounce. Platinum climbed 2.5% to $1,658.40, and palladium gained 1.8% to $1,361.89.
