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.
Bolivian President-elect Rodrigo Paz was sworn in as the country's new President on Saturday ending almost 20 years of one-party rule....
A tornado accompanied by strong winds and heavy rain struck the southern Brazilian state of Parana, killing six people, the state government said on S...
Peace talks between Afghanistan and Pakistan broke down, although a ceasefire continues between the South Asian neighbours, a Taliban spokesperson sai...
UPS and FedEx have grounded their fleets of McDonnell Douglas MD-11 cargo planes after a deadly crash at UPS's Worldport hub in Louisville, Kentucky, ...
Six people have died with one other injured, after a fire broke out in a perfume warehouse in the Dilovasi district of Türkiye on Saturday....
Bolivian President-elect Rodrigo Paz was sworn in as the country's new President on Saturday ending almost 20 years of one-party rule.
A tornado accompanied by strong winds and heavy rain struck the southern Brazilian state of Parana, killing six people, the state government said on Saturday.
Peace talks between Afghanistan and Pakistan broke down, although a ceasefire continues between the South Asian neighbours, a Taliban spokesperson said on Saturday.
UPS and FedEx have grounded their fleets of McDonnell Douglas MD-11 cargo planes after a deadly crash at UPS's Worldport hub in Louisville, Kentucky, which killed 14 people, including three pilots. The incident is under investigation by the U.S. National Transportation Safety Board (NTSB).
Kendrick Lamar and Lady Gaga lead the 2026 Grammy nominations, while K-Pop enters the Song of the Year category for the first time in the award’s history.
Israel launched airstrikes on southern Lebanon after ordering evacuations, accusing Hezbollah of rebuilding its forces despite a year-old ceasefire, as Lebanon and the United Nations warned of renewed border tensions.
U.S. Senate Republicans have blocked a resolution that would have barred President Donald Trump from launching military action against Venezuela without congressional approval, despite growing concern over recent U.S. strikes in the southern Caribbean.
Despite promises of recovery from the new government, Germany’s economy continues to stagnate, with no signs of renewed momentum. According to the latest report from the German Chamber of Industry and Commerce (DIHK), the country still lacks the drive needed for a genuine economic rebound.
Tesla CEO Elon Musk won shareholder approval on Thursday for the largest corporate pay package in history as investors endorsed his vision of morphing the electric vehicle (EV) maker into an artificial intelligence (AI) and robotics juggernaut.
Despite promises of recovery from the new government, Germany’s economy continues to stagnate, with no signs of renewed momentum. According to the latest report from the German Chamber of Industry and Commerce (DIHK), the country still lacks the drive needed for a genuine economic rebound.
Türkiye’s benchmark BIST 100 index ended Thursday up 0.94%, closing at 11,073.27 points. Opening the day at 11,029.29, the index gained 102.9 points compared with the previous close.
Dutch smartphone maker Fairphone is entering the U.S. market, betting on growing demand for repairable and sustainable devices as right-to-repair legislation gains traction, according to Reuters.
Premier Li Qiang said on Wednesday that China's economy will exceed 170 trillion yuan ($23.87 trillion) by 2030, presenting a big market opportunity for the world as trade restrictions rise globally.
Jamaican Prime Minister Andrew Holness on Tuesday said that last week's Hurricane Melissa, the strongest-ever storm to hit its shores, caused damage to homes and key infrastructure roughly equivalent to 28% to 32% of last year's gross domestic product.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment