Gold Soars Past $4,000 for the First Time, Continuing Its Historic Rally! By: Stock Market Charlie

Gold has surged past the $4,000 mark, setting a new record on Wednesday, as investors eagerly seek refuge amidst growing economic and geopolitical uncertainties, along with the anticipation of more interest rate cuts by the U.S. Federal Reserve!

Spot gold is shining bright, up 0.9% at $4,017.16 per ounce by 0442 GMT. U.S. gold futures for December delivery have also jumped 0.9% to $4,040 per ounce.

Gold is traditionally viewed as a safe haven during turbulent times. It's one of the top-performing assets of 2025, with spot gold skyrocketing 53% year-to-date after a 27% rise in 2024!

"There's immense confidence in this trade right now, with the market eyeing the next big milestone of $5,000, especially as the Fed is likely to keep lowering rates," said Tai Wong, an independent metals trader.

"While there might be some bumps, like a lasting truce in the Mideast or Ukraine, the core drivers, such as massive debt, reserve diversification, and a weaker dollar, are set to remain unchanged in the medium term."

The metal's thrilling rally is fueled by a mix of factors, including anticipated interest rate cuts, ongoing political and economic uncertainty, robust central bank buying, inflows into gold exchange-traded funds, and a weak dollar.

The U.S. government shutdown has entered its seventh day, delaying the release of key economic indicators from the world's largest economy and forcing investors to lean on secondary data to predict the timing and extent of Fed rate cuts.

Investors are now betting on a 25-basis-point cut at this month's Fed meeting, with another 25-bp cut expected in December.

"Rising uncertainty levels are propelling gold prices, and we're witnessing this trend unfold once more," said KCM Trade Chief Market Analyst Tim Waterer.

"Market dynamics of lower U.S. interest rates and the ongoing government shutdown continue to favor gold. However, the temptation to take profits around the $4,000 mark poses a potential short-term challenge."

A "fear of missing out" is also fueling the rally, analysts say.

Moreover, political upheaval in France and Japan has further increased demand for the safe-haven bullion.

"The latest surge was ignited by Sanae Takaichi's election over the weekend and the prospect of deeper deficit spending in Japan, tying into the current 'run it hot' trade theme," said Capital.com analyst Kyle Rodda.

Analysts foresee strong inflows into exchange-traded funds backed by physical gold, central bank buying, and the prospect of lower U.S. interest rates supporting gold prices in 2026, leading Goldman Sachs and UBS to elevate their price forecasts.

In other precious metals markets, spot silver sparkled with a 1.3% rise to $48.44 per ounce, platinum soared 2.4% to $1,657.33, and palladium leaped 2.3% to $1,368.68.

Best Regards,

Stock Market Charlie