Gold prices hit $4,000 per ounce for the first time yesterday as a rush from investors to safe-haven assets continued.
Gold futures trading in New York have risen by around 50 per cent since the beginning of the year. Concerns over global debt levels and inflation , a weaker dollar and geopolitical tensions around the world have sent bullion soaring this year – underlining its status as a haven in times of turmoil.
Retail investors have jumped on the bandwagon as protection against inflation while China and other nations have pivoted from US debt into gold. Gold futures traded at around $4,003 per troy ounce – the standard for measuring precious metals – before falling back just under the milestone.
The commodity is on track for its best year since 1979, when prices more than doubled after Iran ’s revolution spiked the price of oil and inflation soared.
Interest in buying precious metals tends to spike in times of anxiety. The US government shutdown, which has entered its second week, has also caused uncertainty in recent days.
Bitcoin has also proved popular, trading at around $122,000 yesterday after hitting a record $125,000 on Monday.
Kathleen Brooks, research director at XTB, said: ‘Gold has had a spectacular run so far this year.’
US stocks opened higher yesterday amid hopes the Federal Reserve will continue to cut interest rates.
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