Washingtin,October 8(HS): Gold prices climbed close to a record high, reaching nearly $4,000 an ounce, driven by ongoing uncertainty from the US government shutdown, volatility in technology stocks, and geopolitical disruptions in Japan and France.

The price of bullion briefly soared to $3,999.41 per ounce before retracing slightly, while December futures in New York crossed the $4,000 mark for the first time on Tuesday.The surge in gold reflects a broader move away from the US dollar amid trade and geopolitical shifts spurred by President Donald Trump’s policies.

Central banks remain avid buyers of gold, and the Federal Reserve’s recent rate cuts have fueled investments in gold-backed exchange-traded funds. Goldman Sachs has raised its forecast for gold prices to $4,900 an ounce by December 2026 due to ongoing demand.

Analysts attribute the rally to narratives of de-dollarization and de-globalization, amid increased fiscal risks and geopolitical tensions. They caution, however, that after a strong uptrend since mid-August, some profit-taking by speculators is likely in the short term.

Billionaire Ray Dalio remarked that gold is increasingly seen as a safer haven than the dollar, with the current rally reminiscent of the 1970s, a period marked by inflation and economic instability. Market analysts point out that the rally also signals a deepening distrust in paper assets as political and economic uncertainties persist globally.

Spot gold was trading at $3,996.11 per ounce in Singapore, while silver prices moved slightly higher after previous declines.

The Bloomberg Dollar Spot Index remained steady at the time.The trend underscores gold’s role as a preferred asset during periods of global risk and economic uncertainty, with investors seeking to protect wealth as traditional currencies face declining confidence.

Hindusthan Samachar / Jun Sarkar