Gold hits record above $3,900 an ounce

Gold surged past $3,900 an ounce for the first time as investors piled into the metal amid a cluster of market shocks and growing expectations of easier U.S. monetary policy. Spot gold rose roughly 1% in early trade, trading near $3,929–$3,930 per ounce, while U.S. December futures were up about 1–1.2%, trading around $3,950–$3,955. Prices touched intraday peaks in the $3,920–$3,944 range before settling slightly lower, marking a fresh milestone in a rally that has already pushed gold up roughly 49% year‑to‑date following a 27% advance in 2024.

Analysts said several forces converged to drive demand for bullion as a safe haven. A sharp fall in the yen after a political shift in Japan removed one traditional currency hedge, directing flows into gold. The partial U.S. government shutdown added another layer of economic uncertainty, with market participants weighing potential disruption to growth and fiscal operations. At the same time, investors increasingly price additional Federal Reserve rate cuts this year, a backdrop that favors non‑yielding assets such as gold because lower interest rates reduce the opportunity cost of holding the metal.

Recent central bank buying and sustained inflows into gold‑backed exchange‑traded funds have also underpinned the rally. Retail interest has grown alongside institutional purchases, creating broad‑based demand that market participants say has amplified price moves. The rally gathered further momentum after the Fed’s recent quarter‑point cut and accompanying guidance that signalled a willingness to lower rates further; the CME FedWatch tool shows the market assigning high probabilities to additional 25‑basis‑point cuts in both October and December, reinforcing expectations of a looser policy path.

Market commentators also highlighted how geopolitical tensions and trade uncertainties have strengthened gold’s appeal as a defensive asset. In such an environment, investors often rebalance portfolios toward assets perceived as safe stores of value, contributing to increased ETF flows and higher central‑bank accumulation.

Other precious metals rose in tandem. Spot silver climbed about 0.8% to near $48.30 an ounce, platinum advanced roughly 1.1% to around $1,622 and palladium gained about 0.8% to near $1,270. Brokers and analysts have turned broadly bullish on the sector, though several cautioned that the sharp advance in prices raises the risk of intermittent profit‑taking or heightened volatility if macroeconomic data or central‑bank communications signal a different trajectory for growth or interest rates.