Gold Prices Reach Historic High: Surpassing 4,000 Dollars

Gold Reaches $4,000 for the First Time in History

Gold has surpassed the historical threshold of $4,010.84 per ounce. This rally is supported by uncertainties in the U.S. economy and the increasing likelihood of a government shutdown.

Significant Milestone

Gold, which was trading below $2,000 two years ago, has gained over 50% in value this year. Global trade uncertainties and concerns about the U.S. Federal Reserve’s independence have led investors to seek safe haven assets.

Geopolitical Tensions and Central Bank Purchases

Rising geopolitical tensions are increasing demand for gold, while central banks continue to buy the precious metal at a high pace. Investors have turned to gold to protect against market shocks following the government funding deadlock in Washington.

Investor Preference: Gold ETFs

In addition to turning to non-yielding gold, investors have also strengthened their interest in gold-backed ETFs; in September, these funds recorded the largest monthly inflow in the last three years.

Market Analysis and Future Expectations

Saxo Capital Markets strategist Charu Chanana commented, "Gold surpassing $4,000 is not only a sign of fear but also related to investors repositioning themselves." On Wednesday, gold rose by 0.7% to reach $4,010.84 and was trading at $4,009.75 as of 10:56 that same day.