Gold prices soared past the historic $4,000 per ounce mark on Wednesday, reaching an all-time high as investors flocked to the precious metal amid rising economic and geopolitical instability. Spot gold rose 0.3% to $3,997.09 per ounce by 0202 GMT, briefly touching a record peak of $4,000.96. Meanwhile, U.S. gold futures for December delivery climbed 0.4% to $4,020 per ounce.
The surge reflects growing demand for safe-haven assets as uncertainty clouds global markets and expectations mount for further interest rate cuts by the U.S. Federal Reserve. Gold, traditionally viewed as a hedge against inflation and financial turmoil, has surged 52% so far in 2025 after an already impressive 27% rise in 2024.
Analysts attribute this remarkable rally to several converging factors — including aggressive central bank purchases, renewed inflows into gold-backed exchange-traded funds (ETFs), a weakening U.S. dollar, and sustained retail demand. This combination has propelled the metal to new highs, reinforcing its appeal as a reliable store of value in uncertain times.
According to UBS analyst Giovanni Staunovo, investor sentiment is increasingly driven by a “fear of missing out” (FOMO), amplifying the bullish trend. “What we see now is that investors are buying gold, despite the price being high, and this is amplifying the move further,” Staunovo noted.
With the global economy showing signs of strain and the prospect of lower interest rates making non-yielding assets like gold more attractive, market experts suggest the rally could continue. The metal’s strong momentum underscores gold’s enduring role as both a hedge and a psychological refuge for investors navigating a volatile financial landscape.


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