Gold exceeds US$4,000 per ounce for the first time
Due to heightened economic and geopolitical uncertainties, robust investment demand, and prospects of additional interest rate reduction from the U.S. Federal Reserve, gold prices hit $4,000 an ounce for the first time on Tuesday.
Due to large central bank purchases, rising demand for exchange-traded funds backed by gold, a declining value of the dollar, and growing interest from ordinary investors looking to protect themselves from escalating trade and geopolitical tensions, gold has climbed 51% so far this year. Gold recorded its best quarterly return since 1986 in the first quarter of this year.
Low interest rates and economic instability are ideal conditions for gold’s growth. Investors wager that it will maintain its value as prices rise since it is regarded as a stable investment and a hedge against inflation.
On Monday, Goldman Sachs increased its December 2026 gold price prediction from $4,300 to $4,900 per ounce.
According to data from the People’s Bank of China, the country’s central bank increased its gold reserves in September for the eleventh consecutive month.
