Wed, 08 Oct 2025

Wed, 08 Oct 2025 Gold surges past $4,000 an ounce as uncertainty fuels rally

Analysts point to delays in the reporting of economic data due to the US government shutdown as one reason for the rise.
Gold prices have risen by around 30% since April, with the current surge being its largest rally since the 1970s. Analysts say the US government shutdown is contributing to gold's increase in value, with another major factor being delays to key economic data releases. The precious metal is considered a safe haven investment, expected to retain or increase its value during times of market turbulence and economic downturns. Gold prices reached over $4,021 an ounce on Wednesday afternoon in Asia, while futures - agreements to buy or sell gold at a pre-determined date - have also hit the same level. Investors' fear is driving demand for safe haven assets like gold, which has seen significant investment this year, with $64bn invested in gold-backed exchange-traded funds (ETFs). Gold prices may fall if the shutdown ends quickly, but analysts predict the upward trend to continue due to economic uncertainty and the weakening US dollar. Retail investors are increasingly buying gold, viewing it as a safeguard against global economic uncertainty, while banks and wealthy families are also investing in the precious metal.
  >>