Gold Price Surges to Record High of Over $4,000 per Ounce
The price of gold has soared to over $4,000 per ounce for the first time this Wednesday morning, marking an unprecedented record in the history of the precious metal. This surge is driven by a demand for safe-haven assets, amidst the backdrop of the US government shutdown, as well as growing expectations of further interest rate cuts by the Federal Reserve (Fed, the US central bank).
The price of gold reached $4,001.11 per ounce at the start of Asian trading (2:00 GMT), after already increasing by over 50% since the beginning of the year. Spot gold rose 0.3% to $3,997.09 per ounce at 02:02 GMT, after hitting a historic high of $4,000.96. December contracts for American gold futures advanced 0.4% to $4,020 per ounce.
Gold is traditionally considered a store of value during times of instability. Its spot price has increased by 52% since the beginning of the year, following a 27% rise in 2024. Several factors have contributed to this surge in gold prices, including increased purchases by central banks, renewed interest in exchange-traded funds (ETFs) backed by gold, a weakening dollar, and strong demand from individual investors. According to analysts, the "fear of missing out" is also reinforcing this upward trend.
