Gold Hits Record $4,200 Amid Fed Rate Cut Bets and Safe-Haven Demand
Gold surged to an unprecedented $4,200 per ounce, marking its first breach of this threshold as traders priced in expectations of deeper Federal Reserve rate cuts this year. The rally reflects a flight to safety amid renewed U.S.-China trade tensions and broader market anxiety.
Spot Gold rose 1.4% to $4,200.11, while December futures climbed 1.3% to $4,218. The metal has gained 59% year-to-date, fueled by geopolitical uncertainty, central bank accumulation, and ETF inflows. "The U.S. government shutdown and dovish comments from Jerome Powell have provided the latest reasons for gold prices to accelerate higher," noted StoneX analyst Matt Simpson.
Precious metals broadly advanced, with silver jumping 2% to $52.48 after touching a record $53.60 earlier in the week. Institutional investors are channeling billions into gold ETFs, positioning the asset as the definitive hedge for 2025's volatility.
