Gold advanced to a new record on Tuesday, with futures surpassing $4,000 an ounce for the first time, as US rate cut expectations and political uncertainty across the globe continue to fuel safe-haven demand.
Three-month gold futures rose to as high as $4,014.60 per ounce before pulling back to $3,987.50, while spot gold set a new all-time high of $3,991 per ounce, a few dollars short of the $4,000-an-ounce level.
The rally gained new momentum as the US government shutdown entered its second week, depriving investors of key economic data needed to gauge the timing and extent of Federal Reserve rate cuts. The market is currently pricing in a 25-basis-point cut this month, with another anticipated in December.
Meanwhile, political turmoil in both France and Japan gripped currency and bond markets for a second day, adding to fiscal concerns and contributing to the rally in gold.
So far this year, bullion has gained nearly 50% as his aggressive moves to reshape global trade and geopolitics spurred a flight to safety and a move away from the dollar. Central banks and gold-backed exchange-traded funds have been enthusiastic buyers, and the US rate cut that began last month has added momentum to the rally.
High investment demand
Nicky Shiels, head of research and metals strategy at MKS Pamp SA, said that a mix of retail demand, especially in Europe and Japan, and institutional inflows have driven the latest surge in gold prices.
Reflecting the positive mood, Goldman Sachs — a long-standing bull on gold — raised its price forecast for December 2026 to $4,900 an ounce, up from $4,300, citing ETF inflows and central bank buying.
The latest data shows that the People’s Bank of China extended its gold buying streak in September for an 11th consecutive month as the safe-haven metal climbed to fresh records.
“I’d suggest overweight in gold — despite its high price — as a hedge against the US dollar and preparing for more shocks to come,” said David Chao, a global market strategist at Invesco Asset Management.
Allocation to gold as a percentage of investors’ portfolios is likely currently in the low single digits — but a level of around 5% is “a prudent measure to me,” he added.
(With files from Bloomberg)
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Gold advanced to a new record on Tuesday, with futures surpassing $4,000 an ounce for the first time, as US rate cut expectations and political uncertainty across the globe continue to fuel safe-haven demand.
Three-month gold futures rose to as high as $4,014.60 per ounce before pulling back to $3,987.50, while spot gold set a new all-time high of $3,991 per ounce, a few dollars short of the $4,000-an-ounce level.
The rally gained new momentum as the US government shutdown entered its second week, depriving investors of key economic data needed to gauge the timing and extent of Federal Reserve rate cuts. The market is currently pricing in a 25-basis-point cut this month, with another anticipated in December.
Meanwhile, political turmoil in both France and Japan gripped currency and bond markets for a second day, adding to fiscal concerns and contributing to the rally in gold.
So far this year, bullion has gained nearly 50% as his aggressive moves to reshape global trade and geopolitics spurred a flight to safety and a move away from the dollar. Central banks and gold-backed exchange-traded funds have been enthusiastic buyers, and the US rate cut that began last month has added momentum to the rally.
High investment demand
Nicky Shiels, head of research and metals strategy at MKS Pamp SA, said that a mix of retail demand, especially in Europe and Japan, and institutional inflows have driven the latest surge in gold prices.
Reflecting the positive mood, Goldman Sachs — a long-standing bull on gold — raised its price forecast for December 2026 to $4,900 an ounce, up from $4,300, citing ETF inflows and central bank buying.
The latest data shows that the People’s Bank of China extended its gold buying streak in September for an 11th consecutive month as the safe-haven metal climbed to fresh records.
“I’d suggest overweight in gold — despite its high price — as a hedge against the US dollar and preparing for more shocks to come,” said David Chao, a global market strategist at Invesco Asset Management.
Allocation to gold as a percentage of investors’ portfolios is likely currently in the low single digits — but a level of around 5% is “a prudent measure to me,” he added.
(With files from Bloomberg)
Sponsored: Secure your wealth today — buy gold bullion directly through our trusted partner, Sprott Money.