Gold surged past $4,000 an ounce, up 50% this year, driven by investor fears over government debt, a weaker dollar, a buying spree by China’s central bank, and concerns the AI stock boom may collapse. With the U.S. shutdown set to continue, investor uncertainty is likely to push the price higher still.
Gold broke a new record on Tuesday, cresting at over $4,000 per troy ounce. It was sitting at $4,055.30 Wednesday morning on Comex’s continuous contract index. It’s up more than 50% for the year.
At first glance, this makes no sense. Gold is traditionally a safe-haven asset that investors run to when times get tough. But U.S. GDP growth is robust, unemployment is low, and the S&P 500 is posting daily record highs. All of that looks like the best of times, not the worst of times.
So why is gold going through the roof?
Several factors are pushing the price higher:
