Fake gold bars piled up in Clermont-Ferrand France on March 25 2025.
Romain Costaseca | Afp | Getty Images
Gold costs hit $4,000 for the first time Tuesday as buyers search a protected haven from a weaker greenback, geopolitical volatility, financial uncertainty and cussed inflation.
Gold futures closed at a report $4,004.40 per ounce, after hitting an intraday all-time excessive of $4,014.60. Prices have risen about 50% this 12 months as the U.S. dollar index has dropped 10% and President Donald Trump upends the world commerce system and threatens the independence of the Federal Reserve.
Central banks and retail buyers are shopping for gold at a speedy tempo. China and different nations are diversifying away from U.S. Treasurys and into gold after Washington imposed stiff sanctions on Russia over its invasion of Ukraine in 2022, and retail buyers are trying for safety towards inflation.
The newest leg larger in the treasured steel got here after the Fed minimize rates of interest in September for the first time this 12 months, making short-term debt devices like Treasury payments much less enticing to buyers. The market is anticipating two extra reductions in the fed funds price, now 4.00% to 4.25%, earlier than year-end. The Fed subsequent meets in three weeks, on Oct. 29.
Ray Dalio, founding father of Bridgewater Associates, really helpful Tuesday that buyers put “something like 15% of your portfolio in gold.” Debt devices are “not an effective store of wealth,” Dalio mentioned at the Greenwich Economic Forum in Connecticut.
Gold is “the one asset that does very well when the typical parts of your portfolio go down,” he mentioned.
Bank of America urged buyers on Monday to strategy gold cautiously as costs headed towards $4,000. BofA warned purchasers that gold faces “uptrend exhaustion,” which may result in “a consolidation or correction” in the fourth quarter.
— CNBC’s Yun Li contributed to this report.