Gold prices surged past the $4,000 per ounce mark for the first time in history on Wednesday, as investors sought refuge amid global uncertainty and growing expectations of further U.S. Federal Reserve rate cuts.
Spot gold climbed to $4,036.98 per troy ounce, up 1.28% from the previous day, while futures, which crossed the milestone a day earlier, also traded above $4,000. According to market data, gold prices have risen 11.30% over the past month and are up 54.77% year-on-year, making 2025 one of the metal’s strongest rallies in recent history.
The ongoing U.S. government shutdown, now in its second week, has delayed key economic data releases, complicating assessments of the country’s economic outlook and reinforcing expectations of monetary easing. Traders are pricing in two 25-basis-point rate cuts, one in October and another in December, amid a dovish Federal Reserve stance.
Political turmoil in France and a leadership transition in Japan have further rattled global markets, intensifying demand for safe-haven assets.
Gold’s rise has been supported by steady central bank purchases and strong inflows into gold-backed exchange-traded funds, with September recording the largest monthly ETF inflow in more than three years following the Fed’s latest rate cut.
Historically, gold reached an all-time high of $4,049.52 in early October 2025, highlighting its enduring appeal as a store of value amid inflation pressures, currency weakness, and geopolitical risks.
