Gold surged to an all-time high of $4,035 per ounce on Wednesday as investors fled to safe-haven assets amid renewed political and economic turbulence in the United States.
Key Takeaways:
Gold hit a record $4,035 per ounce as investors sought safety amid the US government shutdown and market uncertainty. The metal has surged 30% since April, driven by Trump’s tariffs, a weaker dollar, and record inflows into gold ETFs. Analysts warn the rally could cool if the Fed raises rates, though expectations of cuts continue to fuel bullish sentiment.The rally, gold’s strongest since the 1970s, comes as the US government shutdown drags into its second week, rattling confidence in fiscal stability and pushing traders to hedge against uncertainty.
Gold Soars 30% Since April as Trump’s Tariffs Shake Global Markets
The precious metal has climbed roughly 30% since April, when President Donald Trump’s tariff announcements roiled global markets.
Analysts say the prolonged shutdown, coupled with a weakening dollar and growing retail demand, has turned gold into this year’s ultimate refuge asset.
“The shutdown is a tailwind for gold prices,” said Christopher Wong, rates strategist at Singapore’s OCBC Bank. “Investors turn to safe havens during gridlock, and gold has delivered each time.”
According to the World Gold Council, inflows into gold-backed exchange-traded funds (ETFs) have surged to a record $64 billion in 2025.
Precious metals dealers say demand is also booming among private clients. Gregor Gregersen, founder of Silver Bullion, reported that his firm’s customer base has more than doubled in the past year, with many clients holding positions for over four years.
“Gold will fall at some point, but the economic environment supports an upward trend for at least five years,” Gregersen said.
Still, some analysts warn that the rally could lose steam if the shutdown ends or if the Federal Reserve raises interest rates.
Historically, higher yields make non-yielding assets like gold less attractive. In 2022, gold tumbled from $2,000 to $1,600 after aggressive Fed rate hikes aimed at controlling post-pandemic inflation.
For now, markets are betting the next move will be a rate cut, boosting gold’s appeal.
Bitcoin Surges Past $125K, Matching Gold’s Safe-Haven Momentum
Notably, gold isn’t the only asset benefitting from global unease. Bitcoin (BTC), often dubbed “digital gold,” has mirrored the move, surging past $125,000 over the weekend in its strongest October rally on record.
The leading cryptocurrency is drawing billions in ETF inflows, and JPMorgan analysts now project BTC could reach $165,000 by year-end if momentum continues.
“The more institutional dollars experience Bitcoin returning toward all-time highs after dips, the more comfortable they’ll become as long-term holders,” said Timot Lamarre, Head of Market Research at Unchained, a Bitcoin-native financial services firm managing over $11 billion in assets.
“If debasement is viewed as structural rather than temporary, Bitcoin could be entering its next major revaluation phase.”
As reported, mounting fiscal uncertainty in major economies is accelerating a shift into Bitcoin, gold, and silver, as investors brace for further currency debasement.
The so-called “debasement trade” has gained traction amid rising national debts and political instability, prompting a broad retreat from fiat assets.
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