Gold surged past $4,000 on Wednesday, setting a record as investors rushed to safety amid economic and political uncertainty.
Expectations of U.S. Federal Reserve rate cuts further strengthened gold’s rally, adding momentum to the historic climb.
Gold Hits Record
By early Asian trade, spot gold reached $4,017.16 an ounce, while U.S. futures climbed to $4,040.
The metal has jumped 53% this year, following strong 2024 gains, and remains one of 2025’s top-performing assets.
Safe-Haven Demand
Gold has symbolised security for centuries, attracting investors during times of instability and market volatility.
“The market now believes $5,000 is the next stop,” said metals trader Tai Wong, citing debt and a weaker dollar.
Even if conflicts in Ukraine or the Middle East ease, investors will likely continue favouring gold.
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Meanwhile, a week-long U.S. government shutdown clouds the economic outlook and delays official data releases.
Traders now rely on private indicators to judge when the Fed will cut rates, anticipating two small reductions.
“Rising uncertainty drives investors toward gold again,” said KCM Trade’s Tim Waterer, though profit-taking near $4,000 poses risk.
Political tensions in France and Japan have increased demand for bullion, as investors seek security amid uncertainty.
The election of Sanae Takaichi and potential higher Japanese deficit spending boosted the metal’s appeal further.
Outlook For Metals
With central banks actively buying and ETF inflows rising, Goldman Sachs and UBS predict the rally could continue.
Silver, platinum, and palladium have also gained, reflecting wider demand across precious metals markets this year.
