Gold prices have surged past $4,000 per ounce for the first time in history, as investors flock to safe-haven assets amid mounting global economic and political instability.
Long viewed as a reliable store of value, gold typically rises during periods of turbulence. On Wednesday afternoon, spot gold in Asian markets climbed to $4,036 an ounce, after futures prices had already neared the milestone a day earlier.
The rally comes as the Bank of England warns that valuations of artificial intelligence linked technology companies are dangerously inflated, creating the risk of a major market correction. Stock markets in the United States, United Kingdom, and Europe have recently hit record highs, but analysts caution that a drop of 10 percent or more would signal a correction.
Christopher Wong, rates strategist at Singapore-based OCBC Bank, said the ongoing U.S. government shutdown has added momentum to gold’s rise. He noted that during Donald Trump’s first term, a month-long shutdown also pushed gold prices up by nearly 4 percent. However, Wong cautioned that if the current shutdown ends quickly, prices could ease back.
For now, the record-breaking rally underscores gold’s enduring role as the world’s ultimate safe-haven investment and highlights how fragile global markets remain.
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