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Gold prices in the US surged past the $4,000/ounce mark for the first time on Tuesday due to persistent safe-haven demand.
US gold futures for December delivery rose to as high as $4,009.00/ounce before paring some of the gains to trade at $3,998.50/ounce. Spot gold was up 0.4% to $3,974.78 per ounce, after hitting an all-time high of $3,985.48.
“It's ongoing safe-haven flows stemming in part from the US government shutdown and no real indication that is likely to be resolved in the immediate term here,” Peter Grant, vice president and senior metals strategist at Zaner Metals told Reuters. “So there's still a pretty decent bid in gold.”
Non-yielding gold, which tends to do well during times of uncertainty and low interest-rate environments, has climbed 51% so far this year. The metal's rally has been driven by a cocktail of factors, including expectations of interest rate cuts, ongoing political and economic uncertainty, solid central bank buying, inflows into gold ETFs and a weak dollar.
The US government shutdown entered its seventh day on Tuesday (7 October 2025). That has postponed the release of key economic indicators—forcing investors to rely on secondary, non-government data to gauge the timing and extent of Fed rate cuts.
Investors are now pricing in a 25-basis-point cut at the Fed meeting this month, with an additional 25-bps cut anticipated in December.
One basis point is one-hundredth of a percentage point.
Meanwhile, political turmoil in France and Japan gripped currency and bond markets for a second day. The People's Bank of China added gold to its reserves in September for the 11th straight month.
On Monday, Goldman Sachs raised its December 2026 gold price forecast to $4,900/ounce from $4,300/ounce, citing strong exchange-traded fund (ETF) inflows and likely central bank buying.
Elsewhere, spot silver was down 0.8% at $48.13/ounce, platinum fell 0.1% to $1,627.85 and palladium was up 2.3% at $1,349.06/ounce.
English (US) ·