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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Start your day informed with AnewZ Morning Brief: here are the top news stories for the 8th of October, covering the latest developments you need to know.
Hundreds of Texas National Guard soldiers gathered on Tuesday at an Army facility outside Chicago, as Donald Trump's threat to invoke an anti-insurrection law and deploy troops to more U.S. cities intensified the battle over the limits to his authority.
Hamas said on Tuesday it was ready to reach a deal to end the war in Gaza based on President Donald Trump's plan but still has demands, as Qatar's prime minister and senior U.S. mediators headed to Egypt to join indirect negotiations between the Palestinian militant group and Israel.
British Prime Minister Keir Starmer begins a two-day visit to India on Wednesday, joined by more than a hundred leaders from the business, culture and university sectors in an effort to promote a recently signed trade deal.
Video from the USGS (United States Geological Survey) showed on Friday (19 September) the Kilauea volcano in Hawaii erupting and spewing lava.
At least eight people have died and more than 90 others were injured following a catastrophic gas tanker explosion on a major highway in Mexico City’s Iztapalapa district on Wednesday, authorities confirmed.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A powerful 7.4-magnitude earthquake struck off Russia’s Kamchatka Peninsula on 13 September with no tsunami threat, coming just weeks after the region endured a devastating 8.8-magnitude quake — the strongest since 1952.
Authorities in California have identified the dismembered body discovered in a Tesla registered to singer D4vd as 15-year-old Celeste Rivas Hernandez, who had been missing from Lake Elsinore since April 2024.
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Elon Musk’s artificial intelligence startup xAI is targeting a $20 billion capital raise linked to Nvidia hardware, Bloomberg News has reported.
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Euro zone finance ministers are set to meet on Thursday to explore ways to boost the development of euro-denominated stablecoins, amid concerns that the fast-growing market could remain dominated by the United States, a senior euro zone official said.
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