The price of a gold ounce surpassed $4000 on Wednesday for the first time in the history of the precious metal, driven by investors seeking a safe haven amid rising economic and geopolitical uncertainty, alongside expectations that the U.S. Federal Reserve will further cut interest rates.

The yellow metal reached a new peak at $4,012 per ounce in the spot market, after rising more than 52% since the beginning of the year, following a 27% increase in 2024.

Gold price first crossed the $2000 threshold in August 2020, at the height of the COVID-19 pandemic.

After that, the metal fluctuated around this price until 2024 when its price suddenly rose, surpassing $2500 in August 2024, then $3000 in March, before reaching $3500 in September.

Gold has long been considered the quintessential “safe haven” because it preserves its intrinsic value, despite not yielding interest.

Investors buy gold to protect themselves from the risk of losing their money, especially when economic outlooks are bleak.