Gold prices have surged to a historic US$4,000 per ounce, the highest level ever recorded, as investors seek safety in the precious metal amid global economic and political turbulence.
The spike comes as the U.S. dollar weakens, inflation remains stubborn, and investors brace for continued instability in global markets. Gold futures briefly reached US$4,014.60 on Tuesday, marking a gain of over 50% so far this year.
Experts say the surge is being driven by central banks and private investors moving away from U.S. assets. Countries like China have been increasing their gold purchases as part of a shift away from U.S. Treasury holdings, a trend that accelerated after Washington imposed sanctions on Russia in 2022.
The latest boost followed a U.S. Federal Reserve rate cut last month, which made government bonds less appealing. Analysts expect at least two more cuts to be made before the end of the year. Investment expert Ray Dalio has recommended that investors allocate around 15% of their portfolios to gold, stating that it tends to perform well when other assets lose value.
However, Bank of America has cautioned that prices could face a short-term “correction,” as gold’s rapid rise may be nearing a point of exhaustion.
For now, gold remains the world’s top safe-haven asset.
