Gold prices soared beyond $4,000 per ounce for the first time in history on Wednesday as investors rushed to the safe-haven asset amid global economic and geopolitical tensions, as well as expectations of U.S. interest rate cuts.
Spot gold climbed 1.3% to $4,034.59 per ounce by 09:31 GMT, while U.S. gold futures for December delivery rose 1.3% to $4,056.80. Silver also followed the rally, gaining 2.2% to $48.85 per ounce, close to its all-time high of $49.51.
Traditionally viewed as a store of value during crises, gold has surged about 54% year-to-date, outperforming equities, bitcoin, and crude oil. Analysts attribute the rally to a combination of interest rate cut expectations, central bank buying, ETF inflows, and a weaker dollar.
“Geopolitical uncertainty and the ongoing U.S. government shutdown are fuelling risk mitigation via bullion,” said Rhona O’Connell, an analyst at StoneX.
The U.S. government shutdown, now in its eighth day, has delayed key economic data, making it harder for investors to gauge the Federal Reserve’s next moves. Markets are currently pricing in a 25-basis-point rate cut at the Fed’s next meeting and another in December.
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Conflicts in the Middle East and Ukraine, alongside political instability in France and Japan, have further strengthened demand for safe-haven assets like gold.
According to Michael Hsueh of Deutsche Bank, renewed accumulation of gold-backed ETFs in developed markets seen for the first time in five years has also fuelled the surge. In India, gold ETFs reached a record $10 billion in assets under management in September.
Investment banks such as Goldman Sachs and UBS have revised their gold price forecasts upward, predicting continued strength through 2026.
“We expected gold to hit $4,000 closer to year-end, but the direction remains consistent with our outlook,” said Nitesh Shah, commodities strategist at WisdomTree, projecting prices could reach $4,530 an ounce by Q3 2026.
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The rally extended beyond gold; platinum rose 1.5% to $1,643.13, while palladium jumped 3.9% to $1,390.03.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
