Gold futures surged past USD4,000 per ounce for the first time, extending a historic rally as escalating global uncertainty drives investors toward traditional safe-haven assets.
Spot gold also rose 0.5 percent to close at USD3,980.20 on Tuesday, fueled by political instability in France, a prolonged U.S. government shutdown, and growing expectations of interest rate cuts from the Federal Reserve.
The two-week suspension of U.S. federal operations has stalled key economic data releases, leaving markets without vital indicators to assess the economy’s direction. Investors are now pricing in two 25-basis-point Fed rate cuts before year-end, weakening the U.S. dollar and boosting bullion.
In France, the resignation of Prime Minister Sébastien Lecornu has intensified fears of a political stalemate, further rattling investor sentiment.
Gold has now gained over 50 percent in 2025, putting it on track for its strongest annual performance since 1979. The metal’s ascent has outpaced rallies seen during the global financial crisis and the COVID-19 pandemic.
Futures first broke above USD3,000 in March, as concerns over global growth, a weakening dollar, and geopolitical instability gathered pace. The U.S. dollar recently posted its worst first-half performance in more than five decades.
A push by President Donald Trump to reshape global trade and pressure the Fed into further easing only added to market volatility.
Mounting global uncertainties are only strengthening gold’s status as the ultimate refuge in times of turmoil.
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