Gold broke above the $4,000-per-ounce mark on Wednesday, hitting an all-time high as investors sought safe-haven assets amid mounting economic and geopolitical uncertainty, alongside expectations of further interest rate cuts by the U.S. Federal Reserve.
اضافة اعلان
Spot gold rose 1% to $4,021.22 per ounce, while U.S. gold futures for December delivery climbed 0.5% to $4,025 per ounce.
Gold is traditionally seen as a store of value during times of instability.
So far in 2025, spot gold has surged 52% after rising 27% in 2024.
Independent metals trader Tai Wong said: “There’s so much confidence in this trade right now that the market will be eyeing the next big number—$5,000—as long as the Fed keeps cutting interest rates.”
He added: “There will be some bumps along the way, like a permanent truce in the Middle East or Ukraine, but the fundamental drivers—huge and growing debt, reserve diversification, and a weaker dollar in the medium term—are unlikely to change.”
A mix of factors—including increased central bank purchases, renewed investor interest in gold-backed ETFs, a weaker dollar, and strong individual demand—has fueled the yellow metal’s rally.
The U.S. government shutdown entered its seventh day on Tuesday, delaying the release of key economic indicators and forcing investors to rely on secondary non-government data to gauge the timing and scale of Fed rate cuts.
Markets now expect the Fed to cut rates by 25 basis points at this month’s meeting, followed by another 25 basis-point cut in December.
Meanwhile, political turmoil in France and Japan has also boosted demand for gold as a safe haven.
Analysts note that a “fear of missing out” is further amplifying the rally.
Giovanni Staunovo, an analyst at UBS, said: “What we’re seeing now is that investors are buying gold despite the high price, which is adding momentum to the move.”
As for other precious metals, spot silver rose 0.5% to $48.03 per ounce, platinum gained 2.2% to $1,653.21, and palladium climbed 1.3% to $1,355.32.
