Gold Hits Record $4,000 an Ounce as Global Uncertainty Drives Investors to Safe-Haven Assets

Gold prices have soared to an unprecedented high of over $4,000 (£2,985) an ounce, as investors flock to safe-haven assets amid growing economic and political uncertainty worldwide. The metal’s surge marks its biggest rally since the 1970s, climbing nearly one-third since April, when U.S. President Donald Trump’s new tariffs disrupted global trade flows. Analysts attribute the spike to both delays in U.S. economic data caused by the ongoing government shutdown and a weaker U.S. dollar.

According to Bloomberg data, spot gold—the real-time price for immediate delivery—hit $4,036 an ounce in Asian trading on Wednesday afternoon. Gold futures mirrored this figure, reflecting strong bullish sentiment in financial markets. OCBC Bank’s rates strategist Christopher Wong described the U.S. government shutdown as a “tailwind for gold prices,” noting that similar surges occurred during Trump’s previous term. However, he cautioned that a quick resolution to the impasse could cause prices to dip.

UOB’s Head of Market Strategy Heng Koon How called the recent rise “unprecedented,” linking it to both institutional investors and a surge of retail buyers entering the market. Data from the World Gold Council shows a record $64 billion poured into gold-backed exchange-traded funds (ETFs) this year alone. Precious metals dealer Gregor Gregersen, founder of Silver Bullion, reported a doubling in clients over the past year, as retail investors, banks, and wealthy families seek long-term protection against global instability. “Gold will fall at some point,” he said, “but given the economic environment, it’s on an upward trend for at least five years.” Still, analysts warn the rally is not without risks. A spike in inflation or a Federal Reserve interest rate hike could trigger a reversal. In 2022, gold’s value dropped from $2,000 to $1,600 an ounce following the Fed’s aggressive tightening campaign.

With Trump now intensifying pressure on the Fed—criticizing Chair Jerome Powell and attempting to fire Governor Lisa Cook—confidence in the central bank’s independence could weaken further. In this climate, experts agree, gold’s role as a hedge against uncertainty has regained critical importance.