Gold has broken a new record, rising above $4,000 per ounce for the first time. The price of the precious metal has doubled in less than two years, as investors and central banks rush to buy gold during a time of growing global uncertainty.
The spot price reached $4,031 in London on Wednesday morning, up more than 50% since the start of the year. Analysts say it is the biggest gold rally since the 1970s. The surge has been fuelled by several factors, including the ongoing U.S. government shutdown, worries over rising American debt, and new tariffs on imports announced by President Donald Trump.
Central banks, especially in China, Turkey, and India, have been major buyers. They have purchased around 1,000 tonnes of gold each year for the past three years to reduce their dependence on the U.S. dollar. Ordinary investors are also piling in: gold-backed exchange-traded funds (ETFs) have attracted about $64 billion so far this year, including a record $17.3 billion in September.
Some analysts now predict gold could reach $5,000 by the end of the year. Hedge fund manager Ray Dalio said gold is a good way to protect wealth in uncertain times, calling it “an excellent diversifier.”
Experts warn that prices could fall sharply if markets calm down, but for now, demand remains strong. As veteran trader Ross Norman said, “It really is an extraordinary moment.”
