Post by : Rameen Ariff

Gold prices have climbed close to an all-time high of $4,000 an ounce, driven by the ongoing US government shutdown, global political uncertainty, and rising investor demand for safe-haven assets.

Spot gold touched $3,999.41 an ounce before easing slightly, while December futures in New York crossed the $4,000 mark for the first time on Tuesday. This surge marks a more than 50% increase in gold prices in 2025, supported by central bank purchases and investors shifting away from the dollar.

The US government shutdown, now in its second week, has delayed key economic data and clouded the outlook for the Federal Reserve’s rate cuts. At the same time, political turmoil in France and Japan and weakness in US tech stocks have added to investor concerns, boosting demand for gold as a safe-haven asset.

Analysts say the rally is fueled by “de-dollarization” and growing distrust in paper assets. Bart Melek, head of commodities strategy at TD Securities, noted that while demand remains strong, speculators may soon look to book profits after such a rapid rise.

Experts See More Upside for Gold

Investment bank Goldman Sachs has raised its forecast for December 2026 gold prices to $4,900 an ounce, up from $4,300. Billionaire investor Ray Dalio also said gold is “certainly” a stronger safe haven than the dollar, comparing the current rally to the 1970s when inflation and instability drove similar gains.

Another leading investor, Ken Griffin of Citadel, said bullion’s rise highlights growing anxiety about the US currency. Analysts at Vantage Markets added that the climb reflects not just safe-haven demand but also “deepening distrust in paper assets as fiscal risks and geopolitical tensions intensify.”

Currently, spot gold is trading around $3,996 an ounce, while silver also edged higher after losses in the previous session.

With investors rushing to secure gold investments, the precious metal’s rise underscores its role as a global hedge against economic instability and currency risks.

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