Gold prices reached an unprecedented milestone on Wednesday, breaking past $4,000 per ounce for the first time in history as global investors sought refuge from mounting economic and geopolitical instability. The surge marks another chapter in gold’s historic rally, fueled by expectations of U.S. Federal Reserve rate cuts, a weaker dollar, and continued central bank buying.
As of 0300 GMT, spot gold climbed 0.7% to $4,011.18 per ounce, while U.S. gold futures for December delivery advanced 0.7% to $4,033.40. The precious metal has now risen 53% year-to-date, following a 27% jump in 2024, underscoring its appeal as a safe-haven asset during periods of global uncertainty.
“Market confidence in gold is extraordinary right now,” said independent metals trader Tai Wong. “Investors are already eyeing the next big psychological mark of $5,000, given expectations that the Federal Reserve will continue lowering rates.” Wong noted that even potential geopolitical calm — such as ceasefires in the Middle East or Ukraine — is unlikely to derail the long-term bullish sentiment driven by global debt levels, diversification of reserves, and the ongoing decline of the U.S. dollar.
Analysts agree that gold’s strength comes from a combination of economic and political factors. Persistent inflation, uncertainty surrounding the U.S. government shutdown, and strong ETF inflows have all contributed to sustained upward momentum. The shutdown, now entering its seventh day, has delayed the release of key economic data, forcing investors to rely on private indicators to anticipate Fed policy decisions.
Traders are currently pricing in a 25-basis-point rate cut this month, with another expected in December — a scenario that typically boosts gold prices by lowering the opportunity cost of holding non-yielding assets.
“Rising uncertainty is again fueling gains in gold,” said Tim Waterer, Chief Market Analyst at KCM Trade. “The combination of lower interest rate expectations and political gridlock continues to work in gold’s favor, though some investors may take profits around the $4,000 mark.”
The metal’s rally has also been supported by a “fear of missing out,” as retail and institutional investors rush to join the momentum. Political shifts abroad have further reinforced the demand. In Japan, the recent election of Sanae Takaichi and her proposal for deeper deficit spending contributed to renewed buying interest, while turmoil in France has pushed more investors toward safe-haven assets.
According to Capital.com analyst Kyle Rodda, “The latest leg higher reflects the ‘run it hot’ trade — where governments continue fiscal expansion despite rising debt. That’s bullish for gold in the medium term.”
Major financial institutions, including Goldman Sachs and UBS, have raised their gold price forecasts for 2026, citing continued ETF inflows, central bank purchases, and the prospect of sustained monetary easing.
In the broader precious metals market, silver rose 1.3% to $48.42 per ounce, platinum gained 2.5% to $1,658.40, and palladium climbed 1.8% to $1,361.89 — highlighting renewed investor confidence in commodities amid persistent global uncertainty.
