Gold Surges Past $3,900 for the First Time Amid Rising Safe-Haven Demand

Gold prices soared to a historic milestone on Monday, breaking above the $3,900-per-ounce mark for the first time ever, as investors sought refuge in the precious metal amid escalating economic and political uncertainty in the United States. At 11:08 GMT, spot gold climbed 1.4% to $3,940.04 per ounce, after briefly touching an all-time high of $3,949.34 earlier in the session. Meanwhile, U.S. gold futures for December delivery rose 1.4% to $3,964.50, reflecting continued investor confidence in bullion as a reliable hedge against market volatility. 🔹 Safe-Haven Demand Boosts Gold Prices The surge in gold prices comes as the U.S. government shutdown deepens, fueling concerns over the nation’s economic stability. According to a senior White House official, mass layoffs of federal employees could begin if negotiations between President Donald Trump and congressional Democrats fail to progress. “Investor appetite for gold remains firmly supported by the ongoing U.S. government shutdown and broader fears about economic slowdown,” noted Lukman Otunuga, Senior Research Analyst at FXTM. Independent analyst Ross Norman added that while some investors are entering the market due to FOMO (fear of missing out), others believe that the opportunity to buy gold at lower levels may have already passed. 🔹 Gold’s Remarkable 2025 Rally Gold has recorded an impressive 50% gain so far in 2025, driven by robust central bank purchases, a weaker U.S. dollar, growing ETF inflows, and heightened retail investor demand amid intensifying global trade and geopolitical tensions. Norman pointed out that this rally appears to be steady and institutionally backed, rather than speculative, suggesting any future price corrections could be moderate and potentially open new buying opportunities for long-term investors. 🔹 UBS Forecasts $4,200 Gold by Year-End Investment bank UBS projected that gold prices could reach $4,200 per ounce by the end of 2025, citing both fundamental strength and technical momentum as key drivers. “Gold continues to benefit from declining interest rates and the prevailing sense of global economic fragility,” UBS analysts said. Investors are currently pricing in a 25-basis-point rate cut at the next Federal Reserve meeting, with another reduction anticipated in December. 🔹 Silver and Other Precious Metals Also Rise The rally wasn’t limited to gold. Silver prices advanced 1.2% to $48.53 per ounce, reaching their highest level in over 14 years. Meanwhile, platinum gained 0.6% to $1,615.45, and palladium rose 1.6% to $1,280.75. With ongoing global uncertainties, non-yielding assets like gold continue to outperform traditional investments, especially in a low-interest-rate environment where investors prioritize safety and long-term value preservation.

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