Gold prices soared past $4,000 per ounce on Tuesday, marking a historic milestone as investors flocked to the precious metal amid global economic and geopolitical uncertainty. Expectations of additional Federal Reserve rate cuts have further fueled the rally, pushing gold’s price up 51% so far this year.
According to analysts, the surge stems from strong central bank purchases, increased demand for gold-backed ETFs, a weaker US dollar, and growing retail investor interest in safe-haven assets. During the first quarter, gold recorded its strongest performance since 1986, underscoring investor appetite for stability in turbulent times.
GLOBAL UNCERTAINTY FUELS RECORD-BREAKING GOLD RALLY
Gold typically thrives when interest rates are low or during periods of economic instability. As inflationary pressures rise and confidence in traditional currencies wavers, investors view gold as a hedge to preserve value. The ongoing US government shutdown has added further volatility, depriving traders and policymakers of key federal data such as the monthly jobs report and inflation figures.
With limited official data, market participants have turned to secondary sources to anticipate the Fed’s next moves. Current projections suggest quarter-point rate cuts in both the October and December meetings, a trend that could keep gold’s momentum strong through year-end.
EXPERTS PREDICT FURTHER GAINS AS DOLLAR WEAKENS
Michael Langford, Chief Investment Officer at Scorpion Minerals, predicts that gold could reach $4,300 per ounce within six months, as the US dollar continues to depreciate. Similarly, Goldman Sachs has upgraded its December 2026 forecast to $4,900 per ounce, reflecting confidence in sustained demand.
Billionaire investor Ken Griffin expressed concern about gold’s rising dominance over the dollar, calling it “really concerning.” He noted that investors are increasingly seeking ways to de-dollarize and mitigate US sovereign risk through tangible assets like gold.
Adding to the momentum, China’s central bank increased its gold reserves for the 11th consecutive month in September, reinforcing global confidence in the metal’s long-term value.
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