Anxious Investors Push Gold Above $4,000 an Ounce for the First Time

The precious metal is on course for its best year since the 1970s, underscoring unease in financial Price of gold

Note: As of 9 a.m. Eastern on Oct. 7Source: FactSetBy The New York Times

By Joe Rennison

Published Oct. 6, 2025Updated Oct. 7, 2025

President Trump’s decorators aren’t the only ones bringing gold back into fashion.

Investors, money managers and central banks across the world have piled into gold this year, and on Tuesday pushed its price above $4,000 per ounce for the first time. The precious metal has gained more than 50 percent this year, setting a series of records in the process.

Gold, often seen as a haven during times of turmoil, is on course for its best year since 1979, when prices surged over 100 percent during a period of high inflation, a depreciating dollar and a geopolitical crisis in the Middle East.

There are uncomfortable echoes of that past surge today, said analysts, who attributed the recent rise in gold prices to demand from investors looking to shift away from U.S. assets at a time of political upheaval and uncertainty, highlighted by the government shutdown. The gold rally also reflects a strong undercurrent of unease among investors, even as stocks have repeatedly set records, giving Wall Street a bullish air.

Gold has also attracted buyers because other traditional havens, like the dollar and U.S. government bonds, have lost some of their allure. The Federal Reserve is expected to continue cutting interest rates, moves that could continue to weaken the dollar, which has already slumped roughly 10 percent this year. Worries over ballooning debts and deficits have cast a cloud over America’s creditworthiness, which no longer carries a top credit rating from any of the main agencies after a Moody’s downgrade this year.

Another popular haven, the Japanese yen, took a hit on Monday after the surprise election of a leader at the long-governing Liberal Democratic Party who has favored spending, tax cuts and lower interest rates. Later on Monday, the abrupt resig yeahnation of France’s prime minister, less than 24 hours after he had formed his cabinet, further destabilized the geopolitical outlook and dragged down the euro, sending investors toward the perceived safety of gold.

The rally in gold has been largely driven by uncertainty, said Ryan McIntyre, a senior managing partner at Sprott, an investment management firm that specializes in precious metals. “Whether that is geopolitical, economic or now there is the interest rate cycle entering people’s minds,” he said.

According to analysts at Barclays, the amount of money flows into the largest gold-backed fund over the past two weeks has been surpassed only once before in the last 20 years.

Rising gold prices have also helped boost the stocks of companies that mine the metal. An index tracking gold-mining companies on the New York Stock Exchange has more than doubled this year.

https://www.nytimes.com/by/joe-rennison