Gold has reached an unprecedented price of over $4,000 an ounce as geopolitical tensions and financial uncertainties compel investors to seek refuge in the precious metal. Spot gold climbed 1.2% to $4,032.46 per ounce on Wednesday, while U.S. gold futures for December delivery rose by 1.3% to $4,054.80 per ounce.
The precious metal's surge, making it one of the top-performing assets of 2025, can be attributed to investor expectations of more U.S. interest rate cuts, solid central bank buying, and continued economic instability. A weaker dollar has also played a role in the rise, as have inflows into gold exchange-traded funds.
As market analysts foresee further price increases, notable challenges such as political turmoil and a U.S. government shutdown add layers of complexity to the eco