Gold broke the $4000 per ounce level today, marking an all-time high, driven by investors seeking safe haven amid escalating economic and geopolitical uncertainties, alongside expectations that the Federal Reserve will further cut interest rates.

Spot gold rose 0.5% to $4002.53 per ounce by 02:13 GMT.

US December gold futures also increased 0.5% to $4025 per ounce.

Gold is typically considered a store of value during times of instability.

Spot gold has risen 52% since the beginning of the year after a 27% increase in 2024.

Tai Wong, an independent metals trader, said: “There is a lot of confidence in this trade right now to the point that the market will be watching for the next big number, 5000, with the Federal Reserve likely to continue cutting interest rates.”

He added, “There will be some obstacles along the way, such as a permanent truce in the Middle East or Ukraine, but it is unlikely that the fundamental drivers of the trade—massive and growing debt, reserve diversification, and a weak dollar—will change in the medium term.”

A combination of factors such as increased central bank purchases, renewed interest in gold-backed ETFs, a weaker dollar, and strong retail demand have boosted the yellow metal’s rise.

The US government shutdown entered its seventh day on Tuesday, delaying the release of key economic indicators and forcing investors to rely on secondary non-government data to anticipate the timing and extent of rate cuts.

Investors now expect a 25 basis point rate cut at this month’s Federal Reserve meeting, followed by another 25 basis point cut in December.

Additionally, political unrest in France and Japan has increased demand for the safe-haven metal.

Analysts say the “fear of missing out” is also fueling the rally.

Giovanni Stonovo, an analyst at UBS, said, “What we are seeing now is investors buying gold despite the price rise, which adds momentum to its move.”

Other precious metals saw gains as well, with spot silver up 0.5% to $48.03 per ounce, platinum rising 2.2% to $1653.21, and palladium climbing 1.3% to $1355.32.