Gold Surges to Record $4,000 as Political Instability and Weak Dollar Drive Demand
Gold prices have soared to record highs, breaching the $4,000 mark for the first time on Wednesday. This remarkable surge comes amidst a perfect storm of factors, including sustained central bank purchases, a weak dollar, and global political instability. The U.S. government shutdown, now in its seventh day, has further fueled bets on lower interest rates, driving investors towards the safe haven of gold.
Gold has been on a tear in recent years, surging 53% in 2025 and 27% in 2024. This impressive performance has made it one of the top-performing assets of the year. Both Goldman Sachs and UBS have raised their gold price forecasts for 2026, citing sustained central bank purchases and further monetary easing. The rally has been driven by fears over global political instability, a weak dollar, and strong inflows into gold-backed ETFs.
Other precious metals have also risen in tandem with gold. Spot silver stood at $48.44, platinum at $1,657.33, and palladium at $1,368.68. Spot gold climbed to $4,017.16 per ounce, with U.S. gold futures for December delivery at $4,040. The U.S. government shutdown has delayed key economic data, reinforcing bets on lower interest rates and pushing gold prices higher.
In Japan, the election of Sanae Takaichi as the president of the ruling Liberal Democratic Party (LDP) has added to safe-haven demand for gold. Anticipation of increased budget deficits under her leadership has raised inflation concerns, further driving investors towards gold as a safe haven.
Gold prices have reached unprecedented levels, with investors seeking refuge in the precious metal amidst geopolitical tensions and expectations of lower interest rates. The U.S. government shutdown and the election of Sanae Takaichi in Japan have further fueled safe-haven demand, driving gold prices above $4,000 an ounce for the first time. As central banks continue to purchase gold and investors remain cautious, the gold rally shows no signs of abating.
Read also:
- India's Pragmatic Budget: Sitharaman Aims to Revitalise Growth, Alleviate Distress
- Eric Dane Diagnosed with ALS, Advocates for ACT for ALS
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Meta Unveils Ray-Ban AR Display Sunglasses; TikTok Agrees to $200 Million Deal
