Gold smashes US$4k milestone for first time in record bull run

Rally driven by factors like expected rate cuts, political and economic uncertainty

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Gold extended its historic rally to break above US$4,000 an ounce for the first time on Oct 8, as investors piled into the safe haven to seek cover from mounting geopolitical uncertainty while betting on more US interest rate cuts.

Spot gold jumped 1.2 per cent to US$4,032.46 per ounce by 0653 GMT. US gold futures for December delivery climbed 1.3 per cent to US$4,054.80 per ounce.

Traditionally, gold is seen as a store of value during times of instability. Spot gold is up 53 per cent year-to-date after rising 27 per cent in 2024.

“There’s so much faith in this trade right now that the market will look for the next big round number which is 5,000 with the Fed likely to continue to lower rates,” said independent metals trader Tai Wong.

“There will be some bumps in the road like a lasting truce in the Mid-East or Ukraine, but the fundamental drivers of the trade, massive and growing debt, reserve diversification, and a weaker dollar, are unlikely to change in the medium term,” he said.