Gold prices hit $4,000 for the first time Tuesday as investors seek a safe haven from a weaker dollar, geopolitical volatility, economic uncertainty and stubborn inflation.
Gold futures closed at a record $4,004.40 per ounce, after hitting an intraday all-time high of $4,014.60. Prices have risen about 50% this year as the U.S. dollar index has dropped 10% and President Donald Trump upends the global trade system and threatens the independence of the Federal Reserve.
Central banks and retail investors are buying gold at a rapid pace. China and other countries are diversifying away from U.S. Treasurys and into gold after Washington imposed stiff sanctions on Russia over its invasion of Ukraine in 2022, and retail investors are looking for protection against inflation.
The latest leg higher in the precious metal came after the Fed cut interest rates in September for the first time this year, making short-term debt instruments like Treasury bills less attractive to investors. The market is expecting two more reductions in the fed funds rate, now 4.00% to 4.25%, before year-end. The Fed next meets in three weeks, on Oct. 29.
Only Less Moore can afford those prices.