Gold Hits Record $4,000 as Investors Flee to Safety Amid Global Instability

Spot gold surged past the $4,000 mark for the first time in history, signaling a global rush into safe-haven assets as economic and political uncertainty intensifies across major markets. The rally underscores investors’ flight from risk amid renewed fears of a U.S. government shutdown, the resignation of France’s Prime Minister Sébastien Lecornu, and continued trade turbulence between Washington and Beijing, as reported by G Business

According to Vivek Dhar, head of commodities at the Commonwealth Bank of Australia, “the latest rise likely reflects the combination of safe-haven demand, geopolitical tension, and the perception that global policymakers are losing control of fiscal stability.” The gold surge also mirrors the weakening trust in fiat currencies and the fragile balance in the bond market, where yields on the U.S. 10-year and 30-year Treasurys remain largely flat.

Meanwhile, the U.S. dollar index climbed 0.32% to 98.883, as global investors recalibrate portfolios amid volatility. Analysts warn that if central banks continue their current pace of monetary easing, gold could soon test $4,200, driven by both institutional inflows and retail accumulation.

Asian Markets Mixed as Investors React

Across the Asia-Pacific region, stock markets showed mixed performance. Japan’s Nikkei 225 fell 0.45% to 47,734.99, while the Topix gained 0.24%, signaling cautious optimism among Japanese investors despite a weakening yen, which slipped to 152.48 per dollar.

In Hong Kong, the Hang Seng index dropped 0.78%, even as CF PharmTech soared more than 220% on its trading debut, raising approximately $78 million at HKD 14.75 per share. The IPO marks a rare bright spot for Hong Kong’s recovering equity market, which saw over $14 billion raised in the first half of 2025.

Markets in Mainland China and South Korea remained closed due to public holidays, while Australia’s S&P/ASX 200slipped 0.1% to 8,947.6 points.

Central Banks Move to Stabilize Economies

The Reserve Bank of New Zealand unexpectedly cut its benchmark rate by 50 basis points to 2.5%, citing “weak economic activity through mid-2025” and “global uncertainty.” The New Zealand dollar fell nearly 1% to 0.5746 against the U.S. dollar following the announcement.

Meanwhile, the Bank of Thailand is expected to publish its monetary policy update later today, with analysts anticipating no major changes amid regional inflation stability.

Wall Street Reacts to Policy Turmoil

Overnight, Wall Street closed lower, with the S&P 500 down 0.38% to 6,714.59, snapping a seven-day winning streak. The Nasdaq Composite fell 0.67% to 22,788.36, while the Dow Jones Industrial Average slipped 91.99 points to 46,602.98. The market downturn followed investor concern over corporate earnings, particularly a sharp decline in Oracle shares, and ongoing tensions in Washington as the U.S. government shutdown enters its second week.

Analyst Outlook

Analysts across major investment banks describe the $4,000 gold milestone as “both psychological and structural.” The shift represents not only short-term fear but a deeper market conviction that “we’re entering a new monetary cycle,” as one Frankfurt-based hedge fund strategist told Renewz.de.

If inflation expectations rise and central banks continue to intervene, gold may become the most reliable hedge against policy uncertainty in 2025, effectively replacing government bonds in risk-averse portfolios.

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