Gold surpasses historic $4000 per ounce mark – up by half in a year

Gold price exceeds $4000 per ounce for the first time in history. About writes Bloomberg.

On Wednesday, October 8, gold hit a new all-time high of $4037.1 per ounce. Its price has risen by more than 50% since the beginning of the year, the best performance in more than two decades. Two years ago, the gold price was below $2000 per ounce.

Investors are increasingly looking to precious metals as a hedge against inflation, market turmoil, and political risks.

"Gold breaking through $4,000 is not only about fear, but also about redistribution," said Charu Chanana, a strategist at Saxo Capital Markets.

According to her, after the start of the Fed's rate-cutting cycle, real asset yields are declining, and gold is becoming more attractive amid overvalued technology stocks.

Demand is also supported by central banks, which have been actively buying gold since the global financial crisis. After Russia's foreign exchange reserves were frozen in 2022, many countries decided to diversify their assets by building up gold reserves.

Historically, sharp jumps in the price of gold have been accompanied by major economic and political crises: after the 2008 financial crisis, the price exceeded $1,000, during the COVID-19 pandemic it reached $2,000, and in the wake of the administration's tariff wars Donald Trump in March – $3000.

Now the market has broken a record amid Trump's pressure on the US Federal Reserve, including threats to Chairman Jerome Powell and attempts to fire Council member Lisa Cook.

Among other precious metals, silver rose to $48.9 per ounce, the highest since 2011, while platinum and palladium also gained in value.

• American international investment bank Goldman Sachs raised its forecast for gold prices for December 2026 from $4300 to $4900 per ounce.