Investors are flocking to gold as safe-haven demand skyrockets amid market turbulence and Fed rate-cut expectations.
Gold has officially crossed a historic threshold, hitting US$4,002 per ounce for the first time ever, as investors rush to secure their wealth amid rising global uncertainty. The rally comes as markets brace for potential interest rate cuts by the US Federal Reserve and ongoing geopolitical and economic turbulence worldwide.
“There’s so much faith in this trade right now that the market will look for the next big round number, which is 5,000, with the Fed likely to continue to lower rates,” said Tai Wong, independent metals trader.
Why Gold Is Glowing Brighter Than Ever
Gold’s meteoric rise isn’t happening in isolation. After a 27% increase in 2024, gold has already surged 52% in 2025, cementing its reputation as a safe-haven asset. Here’s why investors are buying at record levels:
- Fed Rate-Cut Expectations – Markets anticipate a 25-basis-point cut in October, with another expected in December.
- Global Political Tensions – Political turmoil in France and Japan has added to market anxiety.
- Central Bank Demand – Major central banks continue buying gold, signaling confidence in the metal.
- ETFs & Investment Funds – Inflows into gold-backed exchange-traded funds are accelerating.
- Weakening Dollar – A softer dollar boosts gold’s appeal for global buyers.
“Investors are buying gold despite already high prices, which is amplifying the rally,” explained Giovanni Staunovo, UBS analyst.
How Other Precious Metals Are Performing
Gold isn’t the only metal catching the spotlight:
- Silver: Up 0.5% to US$48.03 per ounce
- Platinum: Surged 2.2% to US$1,653.21
- Palladium: Climbed 1.3% to US$1,355.32
This broad-based rally underscores the growing investor appetite for metals as a hedge against uncertainty.
What This Means for Investors
If you’re thinking about adding gold to your portfolio, now might be the moment. Experts suggest:
- Consider physical gold or ETFs for long-term security.
- Monitor interest rate announcements by the Fed—they can influence short-term swings.
- Keep an eye on global political events, especially in major economies.
- Diversify with silver, platinum, or palladium to balance risk.
Tip: Even if gold prices seem high, safe-haven demand can sustain momentum. Fear of missing out is a real driver right now.
