The $4,000 Moment: Gold Soars to Record High Amid Global Unrest

By Staff, Agencies

Gold prices surged past $4,000 an ounce for the first time in history on Tuesday, as investors rushed to the safe-haven metal amid a weakening dollar, persistent inflation, and rising geopolitical tensions.

Gold futures closed at a record $4,004.40 per ounce after briefly hitting an intraday high of $4,014.60. The metal has soared roughly 50% since the start of the year, propelled by a 10% drop in the US dollar index and mounting uncertainty over President Donald Trump’s economic policies, including his ongoing trade battles and pressure on the Federal Reserve.

The rally has been fueled by both central banks and retail investors. Nations such as China are accelerating gold purchases to diversify away from US Treasurys after Washington imposed sweeping sanctions on Russia in 2022. Meanwhile, individual investors are turning to gold as a hedge against stubborn inflation and fears of financial instability.

The latest price jump followed the Federal Reserve’s first rate cut of the year in September, which reduced the appeal of short-term debt instruments like Treasury bills. Markets now anticipate two additional cuts before year-end, with the Fed’s next meeting scheduled for October 29.

Ray Dalio, founder of Bridgewater Associates, advised investors on Tuesday to allocate “something like 15% of your portfolio in gold,” arguing that traditional debt assets are “not an effective store of wealth”. Gold, he said, “is the one asset that does very well when the typical parts of your portfolio go down”.

Still, some analysts urged caution. Bank of America warned this week that the metal could face “uptrend exhaustion,” suggesting that prices may consolidate or correct in the fourth quarter after their historic climb.