Gold prices climbed above $4,000 an ounce for the first time, marking a new record as investors reacted to growing concerns about the US economy and the risk of a government shutdown.
Investors Seek Safety Amid Uncertainty
The sharp increase reflects a continuation of this year’s strong rally. Gold has risen more than 50% since January. The latest surge comes amid renewed political friction in Washington, including pressure on the Fed’s leadership. These developments have intensified demand for safe-haven assets as investors brace for potential economic disruptions.
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“Gold blew through $4,000. It’s up over $50, trading above $4,035,” said Peter Schiff, Chief Economist and Global Strategist, and Founder of SchiffGold. His remark came as the precious metal surged past the long-watched threshold.
“Silver is up over a dollar, trading just below $49. Gold mining stocks sold off yesterday as nervous investors expected $4,000 resistance to hold, resulting in a correction in mining stocks,” Schiff added, noting the mixed reaction across related assets despite gold’s record move.
Holding Support, Eyes Further Gains
The H1 chart of XAUSD indicates that the rally began after finding support around $3,820. Following the formation of a bullish engulfing candle, the price broke above the $3,900 level.
After a brief pause, it has continued upward, following a trendline. At the time of writing, gold is trading well above $4,000. As long as this level holds as support, the price may sustain its upward momentum.
Gold Gains Support from Central Banks
Gold’s movement has often coincided with moments of global or domestic strain. The metal surpassed $1,000 an ounce after the 2008 financial crisis, crossed $2,000 during the pandemic, and reached $3,000 amid trade disputes several years later.
Geopolitical tensions and persistent demand from central banks have further supported prices. Many investors are turning to gold as a hedge against market uncertainty, with exchange -traded funds backed by the metal recording their largest monthly inflows in over three years.
