Gold prices rose above $4,000 an ounce for the first time on Wednesday, fuelled by investor demand for safe-haven assets amid rising geopolitical tensions and expectations of U.S. interest rate cuts.
Spot gold climbed 0.9% to $4,017.16 per ounce by 0442 GMT, with U.S. gold futures for December delivery up 0.9% at $4,040. The precious metal has surged 53% so far in 2025, after gaining 27% in 2024, making it one of the year’s top-performing assets.
Analysts cited a confluence of drivers behind the rally, including fears over global political instability, a weak dollar, sustained central bank buying and strong inflows into gold-backed exchange-traded funds.
"There’s so much faith in this trade right now that the market will look for the next big round number which is 5,000," said Tai Wong, an independent metals trader. He added that debt concerns, reserve diversification and a weakening dollar were likely to continue supporting gold in the medium term.
The U.S. government shutdown, now in its seventh day, has delayed key economic data, further clouding the outlook and reinforcing bets on lower interest rates. Traders are now pricing in a 25-basis-point rate cut at the Federal Reserve’s October meeting, with another expected in December.
Tim Waterer, chief market analyst at KCM Trade, said, “Rising uncertainty levels tend to fuel gains in the gold price and we are seeing this theme play out again.”
Political developments abroad are also influencing sentiment. In Japan, the weekend election of Sanae Takaichi and expectations of increased deficit spending have added to safe-haven demand, said Kyle Rodda of Capital.com.
Other precious metals also rose. Spot silver increased 1.3% to $48.44 per ounce, platinum rose 2.4% to $1,657.33, and palladium gained 2.3% to $1,368.68.
Both Goldman Sachs and UBS have raised their gold price forecasts for 2026, citing sustained central bank purchases and further monetary easing.
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Representatives of Ukraine, Russia and the United States are set to meet in Geneva for a third round of trilateral negotiations aimed at ending the nearly four-year war, even as both sides intensify military pressure on the ground.
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The Prime Minister, Mark Carney, announced on 16 February that the Honourable Janice Charette has been appointed as the next Chief Trade Negotiator to the United States.
U.S. Ambassador to NATO Matthew Whitaker said China has the power to bring an end to Russia’s war in Ukraine, arguing that Beijing is enabling Moscow’s military campaign.
Iran’s Supreme National Security Council Secretary Ali Larijani said the United States could evaluate its own interests separately from those of Israel in ongoing negotiations between Tehran and Washington.
U.S. Secretary of State Marco Rubio on Sunday (15 February) called it “troubling” a report by five European allies blaming Russia for killing late Kremlin critic Alexei Navalny using a toxin from poison dart frogs.
Ukrainian President Volodymyr Zelenskyy said on Saturday that Russia’s decision to change the leadership of its delegation for upcoming peace talks in Geneva appeared to be an attempt to delay progress.
Cuba’s fuel crisis has turned into a waste crisis, with garbage piling up on most street corners in Havana as many collection trucks lack enough petrol to operate.
Millions of Colombian roses have arrived in the United States just in time for Valentine’s Day, keeping the country on track as the world’s second-largest flower exporter. Between 15 January and 9 February, Colombia shipped roughly 65,000 tons of fresh-cut blooms.
Russia’s car market is continuing to receive tens of thousands of foreign-brand vehicles via China despite sanctions imposed after Moscow’s full-scale invasion of Ukraine in 2022, a journalistic investigation has found.
Türkiye’s national energy company, TPAO, has struck a new cooperation deal with U.S. energy giant Chevron, signing a memorandum of understanding to explore joint oil and gas exploration and production opportunities, the Turkish Energy and Natural Resources Ministry announced on Thursday.
Wall Street ended sharply lower on Tuesday as investors worried about artificial intelligence (AI) creating more competition for software makers, keeping them on edge ahead of quarterly reports from Alphabet and Amazon later this week.
U.S. stock markets finished mixed on Wednesday (28 January) as investors reacted calmly after the Federal Reserve left interest rates unchanged, a decision that had been widely expected and largely priced in.
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