Gold Price Soars to New Heights Amid Economic Uncertainty

Fri Oct 10 2025 11:05:04 GMT+0300 (Eastern European Summer Time)

The value of gold has surged past $4,000 an ounce as investors seek refuge from global economic and political tensions, marking the most significant rise since the 1970s.

Gold prices have reached record levels, exceeding $4,000 per ounce, driven by investors' demands for safe haven assets amid rising economic and political uncertainties amplified by the US government shutdown. Analysts note that this reflects a shift towards gold as a primary investment strategy, which could either bolster or challenge market dynamics depending on forthcoming economic indicators.

The price of gold has hit a record high of more than $4,000 (£2,985) an ounce as investors look for safe places to put their money over concerns about economic and political uncertainty around the world.

Gold has seen its biggest rally since the 1970s, rising by around a third since April when US President Donald Trump announced tariffs which have upset global trade.

Analysts say another issue worrying investors is delays to the release of key economic data due to the US government shutdown, as it enters its second week.

Gold is seen as a so-called safe haven investment, which is expected to retain or increase its value during times of market turbulence or economic downturns.

The price of spot gold - the real-time market value of the precious metal for immediate delivery - rose to more than $4,036 an ounce on Wednesday afternoon in Asia.

Gold futures - which serve as a gauge of market sentiment - reached the same level on 7 October. Futures are agreements to buy or sell the asset at a pre-determined date in the future.

The US government shutdown, which was triggered by repeated impasses over public spending, is a tailwind for gold prices, said OCBC's Christopher Wong, Singapore-based bank's rates strategist.

Investors have turned to safe haven assets like gold during previous US government shutdowns. It rose by nearly 4% during the month-long shutdown in Trump's first term in the White House.

But gold prices could fall if the shutdown ends more quickly than some investors are expecting, said Mr. Wong.

Gold's unprecedented rally in the past month has surpassed analysts' expectations, said UOB bank's head of markets strategy Heng Koon How. The rise is also tied to the weakening US dollar and more non-professional buyers, known as retail investors, purchasing gold.

Not everyone investing in gold buys the physical precious metal. Some investors put their money into financial products, such as exchange-traded funds (ETFs), which are backed by gold. A record $64 billion has been invested in gold ETFs so far this year, according to the World Gold Council trade association.

Gregor Gregersen, the founder of precious metals dealer and storage provider Silver Bullion, noted that customer numbers have more than doubled in the last year. Retail investors, banks, and wealthy families are increasingly turning to gold as a safeguard against global economic uncertainty.

While prices are currently high, Mr. Gregersen added that gold will fall at some point. He attributes its upward trend to the present economic environment. However, it can also dip if interest rates rise or geopolitical tensions ease.

The current rise in gold prices reflects market expectations of the Federal Reserve lowering interest rates, making gold more attractive. Meanwhile, Trump has ramped up pressure on the Fed and publicly criticized Fed Chair Jerome Powell for not cutting rates quickly enough.

The dynamics surrounding gold prices continue to shift, influenced by political actions and global economic conditions, highlighting its enduring appeal as an investment.");