Gold Rush 2.0: Bullion Blasts Towards $4,000 Amid Global Turmoil

Gold prices have surged to fresh record highs, approaching the $4,000-per-ounce mark as investors retreat from riskier assets amid rising political and economic uncertainty.
During Monday’s session, bullion advanced 1.9% to close at $3,977.44 per ounce, while spot prices hovered near $3,965.90 in early Tuesday trading. At these levels, gold is on track for its strongest annual performance since 1979, reflecting its renewed appeal as a safe-haven asset.

So far in 2025, the metal has gained roughly 50%, a move shaped by multiple interlocking factors. The ongoing U.S. government shutdown, now in its second week, has disrupted the publication of key economic indicators, complicating the Federal Reserve’s policy assessment. With markets expecting a 0.25-percentage-point rate cut later this month, lower-yield expectations are reinforcing the attractiveness of non-interest-bearing assets such as gold.

Political upheavals abroad have also added momentum to the rally. In France, the sudden resignation of Prime Minister Sebastien Lecornu following failed budget negotiations unsettled European markets. Meanwhile, reports suggesting Sanae Takaichi could become Japan’s next prime minister introduced additional uncertainty in Asia. Together, these developments have amplified global fiscal concerns and encouraged a defensive turn among investors.

Institutional demand continues to underpin the price strength. Central banks and gold-backed exchange-traded funds (ETFs) have remained consistent buyers. Notably, the People’s Bank of China expanded its holdings for an 11th consecutive month through September. Analysts at Goldman Sachs Group Inc. cited such central-bank accumulation and persistent ETF inflows as key supports for the market. Reflecting this conviction, Goldman raised its December 2026 price target to $4,900 per ounce, up from a previous projection of $4,300.

Broader macro-policy shifts are also reinforcing demand. President Donald Trump’s trade and foreign-policy measures have led some investors to trim exposure to the U.S. dollar, while the anticipated continuation of the Fed’s monetary-easing cycle has further boosted gold’s appeal.

From a portfolio standpoint, strategists increasingly view gold as an essential defensive hedge. One global investment adviser noted that maintaining roughly 5% of total assets in gold can help protect against dollar weakness and future volatility. The ongoing rally underscores a broader realignment toward safe-haven and income-preserving assets, as market participants navigate a period of heightened global uncertainty.

Other precious metals moved modestly in tandem: silver traded above $48 per ounce, palladium rose about 1%, and platinum recorded a 0.5% gain.