Gold prices hit highest levels since 1979 amid political turmoil in United States
Photo: gold bars (Getty Images)
Gold prices are surging, approaching $4,000 per ounce for the first time since 1979, amid political instability and the ongoing US government shutdown, according to Bloomberg.
Global gold prices have once again hit historic highs, approaching $4,000 per troy ounce amid surging demand for safe-haven assets, driven by the US government shutdown and uncertainty over the Federal Reserve’s future policy.
At the opening of trading on Tuesday, gold rose another 0.4% to $3,976.25 per ounce, following a 1.9% jump the previous day. Investors are seeking safety in precious metals as the suspension of federal agencies has deprived markets of key macroeconomic data needed to assess the state of the US economy, complicating the Fed’s decision-making ahead of its next meeting at the end of October.
Traders are now pricing in the likelihood of a quarter-point interest rate cut by the Federal Reserve this month, a move that could further fuel gold’s rally, since the metal, which pays no interest, tends to benefit from looser monetary policy.
Since the beginning of 2025, gold has gained more than 50%, repeatedly setting new records. If the trend continues, it will mark the largest annual increase since 1979. Analysts attribute the rally to aggressive central bank purchases and inflows into gold-backed ETFs following the resumption of the US rate-cut cycle.
On the spot market in Singapore, gold traded at $3,961.33 per ounce at 6:41 a.m. local time, little changed from the previous session. The Bloomberg Dollar Spot Index slipped 0.1%, providing additional support for the metal.
Silver held steady after rising 1.6% in the prior session to $48.77 per ounce, just one dollar shy of its all-time high from 1993. Prices for platinum and palladium also advanced.
