Gold Surpasses $4,000 as Investors Flee to Safety

Gold prices rocketed past the $4,000 per ounce mark today in a dramatic rally fueled by investor demand for safe-haven assets and growing expectations for U.S. interest rate cuts. The surge comes amid mounting global uncertainty including geopolitical tensions and an ongoing government shutdown in the U.S.

Spot gold climbed over 1% to more than $4,039 per ounce, while December futures rose sharply to around $4,061. Silver also gained nearly 2%, approaching record levels as metals broadly benefited from the risk-off sentiment.

Analysts point to several key drivers: anticipation that the Federal Reserve will lower rates, the weakening of the U.S. dollar, persistent inflation concerns, and strong inflows into gold-backed exchange-traded funds (ETFs). Central banks are also continuing to accumulate gold to diversify reserves away from traditional currencies.

Despite the strength, some market watchers caution that gold may be overbought in the short term, making it vulnerable to corrections if rate cut expectations falter or macroeconomic data surprises. Still, many believe the prevailing conditions remain favorable for further gains in the coming months.