Gold Hits Record High,Surpassing $4,000 Per Troy Ounce
The price of gold surged to a new all-time high today,exceeding $4,000 per Troy Ounce (31.1 grams) – equivalent to over €3,400 – driven by investor demand for a safe haven asset amid global economic and geopolitical uncertainty. This marks a important milestone for the precious metal, reflecting escalating anxieties about the global financial landscape.
The rapid ascent of gold is fueled by expectations of further interest rate cuts by the US Federal Reserve and concerns surrounding the potential US government shutdown.Since the start of 2025, gold has experienced a dramatic price increase, rising from approximately $2,670 (around €2,300) in early January. This surge impacts investors, central banks, and the broader economy, signaling a potential shift in market sentiment.
Investors are increasingly turning to gold as a store of value during times of instability. “There is currently so much confidence in the trade in gold that the market is looking forward to the next big round number: 5000,” stated Tai Wong, an independent American metal trader, to Reuters. He anticipates the Federal Reserve will likely continue to lower interest rates.
However, Wong also cautioned that obstacles remain, such as achieving a lasting ceasefire in the Middle East or Ukraine. Despite these potential hurdles, he believes the underlying drivers of the gold market – including rising debts and a weakening dollar – are likely to persist in the medium term.
The Troy Ounce, a historical weight unit of 31.103 grams, is used in the precious metals trade to ensure international standardization and facilitate global price comparisons.
