Gold Hits Unprecedented $4,000 an Ounce Amid Market Turmoil

Updated by Faith Barbara N Ruhinda at 1308 EAT on Wednesday 8 October 2025

Gold prices surged to a historic high of $4,000 per ounce on Tuesday, marking the first time the precious metal has reached that milestone. The rally is being driven by robust investment demand amid escalating geopolitical tensions, global economic uncertainty, and growing expectations of further interest rate cuts from the Federal Reserve.

So far this year, gold has gained 51%, propelled by aggressive central bank purchases, increased inflows into gold-backed exchange-traded funds (ETFs), a weakening U.S. dollar, and rising interest from retail investors seeking safe-haven assets. In the first quarter alone, gold posted its strongest quarterly performance since 1986.

Often viewed as a hedge against inflation and economic instability, gold tends to perform well in low interest rate environments. As concerns mount over global trade tensions and slowing growth, investors are turning to the metal as a resilient store of value.

The ongoing government shutdown has left traders and policymakers without access to critical federal data, including the closely watched monthly jobs report. With key inflation figures for September expected next week, investors are increasingly forced to rely on secondary, non-government sources to assess the outlook for monetary policy.

In the absence of official data, markets are still pricing in a 25-basis-point interest rate cut at the Federal Reserve’s October 28–29 meeting, with expectations for a similar move in December.

“I see gold reaching $4,300 per ounce over the next six months as the U.S. dollar is expected to continue to depreciate,” said Michael Langford, chief investment officer at Scorpion Minerals.

Meanwhile, billionaire investor Ken Griffin voiced concern on Monday about gold’s growing role as a perceived safe haven, calling its emergence as a more trusted asset than the U.S. dollar “really concerning.”

“We’re seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize, or de-risk their portfolios vis-à-vis U.S. sovereign risk,” billionaire investor Ken Griffin said in an interview with Bloomberg, as quoted by CNN.

Reflecting the bullish sentiment, Goldman Sachs on Monday raised its year-end 2026 gold price forecast to $4,900 per ounce, up from its previous projection of $4,300.

Adding to the momentum, China’s central bank increased its gold reserves for an 11th consecutive month in September, according to data from the People’s Bank of China.