Gold vaults over US$4,000 on rush to safety and Fed easing bets

[BENGALURU] Gold smashed through US$4,000 an ounce to hit a record high on Wednesday (Oct 8), driven by investors seeking safety from mounting economic and geopolitical uncertainty, alongside expectations of further interest rate cuts by the US Federal Reserve.

Spot gold was up 0.3 per cent at US$3,997.09 per ounce by 10.02 am, after hitting an all-time high of US$4,000.96. US gold futures for December delivery gained 0.4 per cent to US$4,020.00 per ounce.

Traditionally, gold is seen as a store of value during times of instability. Spot gold is up 52 per cent year-to-date after rising 27 per cent in 2024.

A clutch of factors such as higher central bank purchases, renewed interest in gold-backed exchange-traded funds, a softer US dollar and resilient retail demand has fueled the metal’s bullish run.

A “fear of missing out” is also boosting the rally, analysts say.

“What we see now is that investors are buying gold, despite the price being high, and this is amplifying the move further,” said UBS analyst Giovanni Staunovo. REUTERS