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.
The UN's International Maritime Organization has paused escort operations through the Strait of Hormuz after a cargo ship was reportedly attacked near...
Montenegrin police, working alongside the United States' Federal Bureau of Investigation, have arrested an Iranian national accused of carrying out a ...
Kazakhstan has not received an official request from Russia for petrol supplies, Energy Minister Yerlan Akkenzhenov said, as fuel shortages and sales ...
Iran's Ministry of Foreign Affairs on Friday (26 June) condemned as "interventionist, irresponsible and provocative" a statement issued following a jo...
South Korea is set to dramatically expand its unmanned warfare capabilities, with plans to integrate drones across all branches of its military as ten...
The UN's International Maritime Organization has paused escort operations through the Strait of Hormuz after a cargo ship was reportedly attacked near Oman, with two U.S. officials accusing Iran of the attack.
Montenegrin police, working alongside the United States' Federal Bureau of Investigation, have arrested an Iranian national accused of carrying out a series of cyberattacks that allegedly caused an estimated $3.4 billion in damage to U.S. infrastructure.
South Korea is set to dramatically expand its unmanned warfare capabilities, with plans to integrate drones across all branches of its military as tensions with North Korea continue to shape the country's defence strategy.
Azerbaijan Airlines (AZAL) has taken delivery of its first Airbus A321neo, marking another milestone in the carrier's long-term fleet modernisation programme aimed at improving efficiency, expanding capacity and enhancing the passenger experience.
Russia has called for clarification on whether U.S. President Donald Trump has changed his position on the war in Ukraine following remarks made at the recent G7 summit in Evian-les-Bains.
An earthquake of magnitude 6.9 struck Japan's northeast coast on Thursday, but no tsunami warning was issued, no injuries were immediately reported and no irregularities were found at nuclear facilities, the authorities said.
As Western Europe battles a deadly heatwave that has shattered temperature records, disrupted transport and power supplies, and forced the closure of schools and cultural landmarks, attention is turning to whether El Niño is playing a role in the extreme conditions.
The U.S. Senate rejected a resolution on Wednesday that would have directed President Donald Trump to remove U.S. forces from hostilities against Iran unless Congress formally authorised military action.
Israel's defence minister said on Wednesday Israeli troops will not withdraw from southern Lebanon, highlighting a hurdle to Iran-U.S. peace talks, as the top U.S. diplomat tours the Middle East to win over allies sceptical about a proposed deal.
Apple is facing a £3 billion lawsuit in the United Kingdom after a competition tribunal approved a major collective action over its iCloud storage service.
China has opened its market to cashew nuts from all African countries with diplomatic relations with Beijing, removing a long-standing barrier that had restricted exports from much of the world's largest cashew-producing continent.
Media leaders from across Europe gathered in Vienna this week for the annual European Publishing Congress.
Amazon founder Jeff Bezos has said artificial intelligence will ultimately lead to labour shortages rather than widespread unemployment, pushing back against growing fears that AI will replace human workers.
French department store BHV and online fast-fashion retailer Shein have ended their partnership, seven months after the launch of a permanent Shein shop in Paris triggered controversy and widespread criticism.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment