Gold Tops $4,000 Amid Global Uncertainty
Gold prices crossed the $4,000 per ounce mark for the first time on October 8, as investors rushed towards safe-haven assets amid rising economic and geopolitical concerns. Spot gold touched $4,011, while December futures climbed above $4,030.
What’s Driving the Rally
The surge is being fueled by expectations of a U.S. Federal Reserve rate cut, which reduces the opportunity cost of holding gold. Other factors include the ongoing U.S. government shutdown, strong inflows into gold exchange-traded funds (ETFs), sustained central bank buying, and a weaker dollar that makes gold more attractive for global investors.
Record Performance in 2025
Gold has gained more than 50 percent this year, emerging as one of the best-performing assets globally. Silver too has surged, with prices rising nearly 60 percent in some markets. Analysts note that the rally has outpaced equities and bonds, reflecting heightened investor caution.
Risks and Future Outlook
Experts warn that a correction could occur if expectations of rate cuts are delayed or geopolitical risks ease. Still, many institutions predict gold’s momentum will continue, with some forecasting a rise towards $4,900 by 2026 if current trends hold.
