Gold prices have surged past the $4,000-per-ounce mark for the first time in history, driven by concerns over the U.S. economy, a looming government shutdown, and heightened geopolitical tensions.
This milestone marks a dramatic rise for bullion, which traded below $2,000 just two years ago, delivering returns that now outpace equities this century.
“Gold breaking $4,000 isn’t just about fear, it’s about reallocation,” said Charu Chanana, strategist at Saxo Capital Markets Pte.
“With economic data on pause and rate cuts on the horizon, real yields are easing, while AI-heavy equities look stretched.
“Central banks built the base for this rally, but retail and ETFs are now driving the next leg.”
As of 2:02 p.m. in Singapore, gold was trading at $4,028.13 per ounce, after reaching an intraday high of $4,037.10, its strongest level on record.
Historically, gold prices have climbed sharply during periods of financial stress.
The metal crossed $1,000 an ounce in the wake of the 2008 global financial crisis, breached $2,000 amid the COVID-19 pandemic, and surpassed $3,000 during U.S. trade tensions in early 2020.
“Buying more gold is always good. It remains one of the safest and most reliable stores of value,” said Prof. Joseph Nnanna, Chief Economist at the Development Bank of Nigeria.
When central banks source gold domestically, it stimulates the entire mining value chain, from raw extraction to refining and jewelry manufacturing. That catalyzes industrialization, according to Prof. Nnanna.
Gold prices have soared by more than 50% in 2025, fueled by global trade uncertainties, questions surrounding the Federal Reserve’s independence, and growing anxiety over U.S. fiscal stability.
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