Gold prices surged to a record high of more than $4,000 an ounce on Wednesday, as investors sought a haven during the U.S. government shutdown and economic and political uncertainty around the globe.
Gold futures were up to $4,060 because of a mix of factors, including the federal funding lapse and expectations of another interest-rate cut from the Federal Reserve.
Analysts also pointed to political uncertainty in France and Japan, the weakening of the U.S. dollar and gold purchases by retail investors and central banks around the globe.
“No stopping the price of gold for now: Up more than 50% so far this year, it has more than doubled over the past two years,” Mohamed A. El-Erian, an economist and chief economic adviser at Allianz, posted on X.
Gold is often viewed as a safe-haven asset in times of uncertainty.
The government shutdown entered its second week on Wednesday, and investors haven’t been able to receive official economic data, such as the monthly jobs report.
The Fed is expected to cut interest rates at its late-October meeting, making assets like gold more attractive.
The CME Fedwatch monitor says there is a 95% probability of a cut of 250 basis points, or 0.25%.
The gold rush fueled a running joke on social media, where users said that gold is mentioned in the Bible 400 times, but “value stocks” and “Nvidia” are not mentioned at all.
Gold prices stood at $3,677 one month ago and kicked off October at $3,897.
President Trump, who decked out the Oval Office in gold during his second term, ensured Americans in August that he would not impose import taxes on the precious metal from Switzerland or other countries.
“Gold will not be Tariffed!” he posted on Truth Social.
UBS Global Wealth Management, in a recent analysis, said gold “remains an effective portfolio diversifier and hedge against political and economic risks.”
“We expect gold to benefit from lower real interest rates, a weaker dollar, robust central bank demand, and investor concerns about rising government debt levels, the potential for financial repression, and ongoing geopolitical risks,” analysts wrote.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.