Gold hits $4,000 an ounce, setting new record

Spot gold prices broke through the $4,000-per-ounce barrier on Wednesday, reaching an all-time high, according to the latest market data. 

Meanwhile, on Tuesday, gold futures for December delivery on the New York Mercantile Exchange closed at $4,004.40 per ounce, a new closing high and up 0.71 percent from the previous session.

Goldman Sachs has raised its gold price forecast for December 2026 from $4,300 to $4,900 per ounce, citing strong inflows into exchange-traded funds (ETFs) in Western markets and expectations of continued gold purchases by central banks.

The surge in gold prices, which have risen by more than 20 percent since late July, has been driven by increased risk aversion due to the US federal government shutdown. The dollar has also weakened against major currencies this year, with its decline being the most significant since the 1970s, a period shortly after the US abandoned the gold standard. Political uncertainties in countries such as France and Japan have further fueled investor concerns and pushed gold prices higher.

Ray Dalio, founder of the hedge fund Bridgewater Associates, said that gold is "definitely" a safer haven than the US dollar in conversation with Bloomberg's Lisa Abramowicz. He compared the current gold rally to the 1970s, when gold prices soared amid high inflation and economic instability in the US.