Gold blazes past historic $4,000 as investors rush to safety

Gold surged past the historic $4,000-an-ounce mark on Tuesday, consolidating its position as the ultimate safe-haven amid a storm of geopolitical uncertainty, inflationary pressures, and growing fears over the global economic outlook.

- Issac John [e-mail]

The record-breaking rally lifted gold futures to $4,005.80 per ounce, representing a gain of more than 50 per cent this year — its strongest annual run in decades.

The surge comes as the US dollar index has weakened by about 10 per cent, while renewed trade tensions and policy unpredictability under President Donald Trump's second term continue to rattle financial markets. Trump's tariff escalations and his attacks on the Federal Reserve's independence have amplified concerns over monetary stability, driving a wave of capital into traditional stores of value such as gold.

This year's rally has already outpaced several major bull runs in the past century. Gold prices have now climbed nearly 130 per cent from their 2022 correction lows, following a long consolidation after the 2020 pandemic surge.

Bank of America analyst Paul Ciana, however, cautions that the market may be approaching what he calls “uptrend exhaustion.”