Gold has rocketed to a fresh all-time high above 4,000 US dollars (£2,987) per ounce as investors rush towards the precious metal amid mounting global uncertainty. The yellow metal's unprecedented rally continues to accelerate, with no signs of the surge abating.
The price surge represents an extraordinary climb of more than 50% this year alone. Rising government debt worldwide, political instability, and expectations of lower interest rates across major economies including Britain and the United States have all contributed to the dramatic ascent.
Uncertainty drives investment rush
US President Donald Trump's aggressive trade tariff war, launched in April, has significantly rattled markets and triggered a flight to gold's perceived safety. The ongoing US government shutdown, now entering its second week, has further heightened investor anxiety and accelerated demand for the traditional safe-haven asset.
Investors have long regarded gold as crucial protection during periods of broader market turbulence and elevated inflation. The metal's appeal as a reliable store of value becomes especially pronounced when conventional investments face increased risks from policy uncertainty and geopolitical tensions.
Central banks join buying spree
Central banks globally have been aggressively accumulating gold reserves in response to the rally, according to BestBrokers. Global gold reserves have soared to an unprecedented 4.013 trillion euros (£3.48 trillion) in October, marking a substantial 37.5% increase from the end of 2024.
The United States continues to hold the world's largest gold reserves with 8,133 tonnes, now valued at 1.04 trillion dollars (£776 billion). This milestone marks the first time any nation's gold holdings have exceeded the one trillion US dollar threshold, highlighting the metal's extraordinary valuation surge.
Expert predictions point higher
Ewa Manthey, commodities strategist at ING, said: "Gold has staged a historic rally, doubling in less than two years, spurred by central bank buying as it diversifies away from the US dollar, President Donald Trump's aggressive trade policy and conflicts in the Middle East and Ukraine."
She added: "Markets are pricing in a quarter-point (US rate) cut this month, which would further benefit gold, as it doesn't pay interest. Policy uncertainty and growing bets on Federal Reserve easing are keeping safe-haven demand strong."
Ahmad Assiri, research strategist at Pepperstone, predicted the gold rush would persist for an extended period. He said: "Gold's message is clear - in a world where the gap between valuations and policy credibility continues to widen, gold remains the timeless asset that bridges enduring value with a renewed relevance."
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
