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Gold prices soar past $4,000 per ounce for the first time
Gold prices have hit record highs, with futures climbing past $4,000 per ounce for the first time, as investors turn to the metal as a safe haven.
Gold futures climbed above $4,000 per ounce for the first time as investors sought a safe haven amid the US government’s effective shutdown, according to Associated Press.
As of 9:10 a.m. ET, gold futures were trading at $4,003 in New York, while New York spot gold stood at $3,960.60 per troy ounce, the standard measure for precious metals.
Gold often sees a surge in demand when investors grow anxious and look for secure assets.
US gold futures for December delivery rose 0.6 percent to $4,000.90, marking the first time the $4,000-per-ounce milestone was breached.
"It’s ongoing safe-haven flows stemming in part from the government shutdown and no real indication that is likely to be resolved in the immediate term here. So there’s still a pretty decent bid in gold," Peter Grant, vice president and senior metals strategist at Zaner Metals told Reuters.
Gold, a non-yielding asset that typically performs well during periods of uncertainty and low interest rates, has surged 52 percent so far this year.
Its rally has been fueled by a mix of factors, including expectations of interest rate cuts, persistent political and economic uncertainty, strong central bank buying and inflows into gold ETFs.
The US government shutdown, now in its seventh day, has delayed the release of key economic data, forcing investors to rely on secondary sources to assess the timing and scale of potential Federal Reserve rate cuts.
