Gold breaks $4,000 barrier on safe-haven demand
GOLD breached $4,000 per ounce for the first time on Wednesday, propelled by investor appetite for security amid escalating economic and geopolitical tensions and anticipated US Federal Reserve interest rate reductions, said Reuters.Spot gold advanced 0.9% to $4,017.16 per ounce by 0442 GMT, whilst December futures climbed 0.9% to $4,040, the newswire said.The precious metal has emerged as one of 2025’s strongest-performing assets, gaining 53% year-to-date following a 27% increase in 2024. Gold traditionally serves as a wealth store during periods of instability.“There’s so much faith in this trade right now that the market will look for the next big round number which is 5,000,” independent metals trader Tai Wong told the newswire, citing the Fed’s likely continued rate cuts.The rally reflects multiple factors including rate cut expectations, persistent political and economic uncertainty, robust central bank purchases, exchange-traded fund inflows and dollar weakness.The US government shutdown reached its seventh day Tuesday, delaying crucial economic data releases and forcing investors to rely on non-governmental sources when assessing Fed policy timing. Markets currently anticipate 25-basis-point cuts both this month and in December.Political upheaval in France and Japan has further bolstered safe-haven demand. Sanae Takaichi’s weekend election victory and prospects for increased deficit spending in Japan sparked the latest price surge, according to Capital.com analyst Kyle Rodda.Goldman Sachs and UBS have raised price forecasts, expecting sustained support from ETF inflows, central bank buying and lower US rates through 2026.Other precious metals also gained: silver rose 1.3% to $48.44 per ounce, platinum advanced 2.4% to $1,657.33, and palladium climbed 2.3% to $1,368.68.The post Gold breaks $4,000 barrier on safe-haven demand appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com
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