Gold Surpasses $4,000 Amid Investor Flight to Safe Haven

HONG KONG,

Gold prices soared past $4,000 for the first time Wednesday as investors sought refuge amid expectations of US interest rate cuts and concerns over a potential US government shutdown.

The precious metal hit a high of $4,037.10, buoyed by worries that a tech-driven rally in equities, which has pushed some markets to record levels, may have overheated. Silver also approached its record highs.

Gold has climbed more than 50 percent since the start of the year, driven by global economic uncertainty, trade tensions from former US President Donald Trump, and geopolitical crises. Political turmoil in France, including the resignation of Prime Minister Élisabeth Borne, further fueled demand.

“The rapid rise in gold prices has been supported by inflows into exchange-traded funds and central bank buying, including strong demand from China, as gold benefits from political, economic, and inflation uncertainty,” said Taylor Nugent of National Australia Bank. Chris Weston from Pepperstone added that investors and global reserve managers are turning to gold as a hedge against fiscal recklessness, currency devaluation, and unpredictable government policy.

Meanwhile, equity markets in Asia were subdued amid concerns over the sustainability of AI-driven gains. Companies like Nvidia reached record valuations, but a weaker-than-expected profit margin from Oracle shook trading floors, pushing Wall Street indexes lower. Tech stocks led declines in Hong Kong, Taipei, and Tokyo, while Sydney, Mumbai, and Singapore also saw losses.

Markets in Tokyo had initially rallied on optimism over the election of conservative leader Sanae Takaichi, signaling potential stimulus measures and monetary easing. Other Asian markets, including Wellington, Manila, Bangkok, and Jakarta, edged higher, alongside London, Paris, and Frankfurt in Europe.