Gold Surges Past $4,000 for the First Time as Investors Seek Safe Haven
October 8, 2025 | Updated 21 minutes ago
Gold prices soared past $4,000 an ounce for the first time on Wednesday, as investors rushed toward the safe-haven asset amid expectations of US interest rate cuts and growing concerns over a potential US government shutdown.
The rally marks a historic moment for the precious metal, which has gained over 50% since the start of the year, fueled by persistent global economic uncertainty, geopolitical tensions, and market volatility.
Financial experts say the surge reflects investors’ desire for stability amid fears that the tech-driven stock market rally may have overheated, creating potential asset bubbles.
“The rapid rise in gold prices has been supported by rising inflows into exchange-traded funds (ETFs) and strong central bank buying — particularly from China,” said Taylor Nugent of National Australia Bank. “Gold is benefiting from political, economic, and inflation uncertainty.”
Gold reached a record high of $4,006.68 per ounce on Wednesday, even as the US dollar strengthened against most major currencies. Silver also climbed, nearing its own all-time high.
Adding to investor anxiety, the partial shutdown of the US government has delayed key economic data releases, including the latest jobs report, creating uncertainty for the Federal Reserve as it weighs its next rate decision.
Meanwhile, political turmoil in France — including the resignation of the country’s prime minister and renewed pressure on President Emmanuel Macron to call early elections — added further fuel to the gold rally.
Across Asia, stock markets were mixed, with traders taking a cautious stance after concerns emerged about inflated valuations in the artificial intelligence (AI) sector.
A disappointing report from Oracle, which revealed weaker-than-expected cloud computing profit margins, triggered a sell-off on Wall Street, sending all three major US indexes lower.
“In a market priced for perfection, even a temporary delay in cash flow feels like the bartender calling ‘last call’,” said Stephen Innes of SPI Asset Management. “The Oracle story didn’t crash the party, but it definitely sobered it.”
Tech-heavy markets in Hong Kong and Taipei led losses, while Sydney and Singapore also dipped. However, Tokyo stocks inched higher on optimism that newly elected conservative leader Sanae Takaichi will push for economic stimulus and monetary easing.
Elsewhere in the region, Wellington, Manila, and Jakarta posted modest gains, reflecting a cautious yet resilient tone across Asian trading floors.
