By Atoyebi Nike
Gold prices soared past $4,000 on Wednesday for the first time ever, as investors rushed to the safe-haven asset amid expectations of US interest rate cuts and growing anxiety over a US government shutdown.
The precious metal climbed to a record $4,039.86, marking a more than 50 percent rise since the start of 2025, driven by economic uncertainty, Donald Trump’s trade war, and geopolitical crises. The rally comes as concerns mount that a technology-fuelled stock surge may have created an asset bubble, leading some investors to shift toward safer assets.
Political turmoil in France further intensified demand after the prime minister resigned and President Emmanuel Macron’s former premier urged him to step down and call early elections.
“The rapid rise in gold prices has been supported by rising inflows into exchange-traded funds and central bank buying, including solid demand from China, as gold benefits from political, economic, and inflation uncertainty,” said Taylor Nugent of National Australia Bank.
Pepperstone’s Chris Weston added that global reserve managers are hedging against “fiscal recklessness, currency debasement, and unpredictable government policy,” with gold at the centre of that strategy.
Meanwhile, parts of the US government remain closed, delaying key economic data such as jobs figures and complicating the Federal Reserve’s policy outlook.
Equity markets in Asia were muted as traders reassessed the sustainability of the AI-driven rally that has propelled some indexes to record highs. A disappointing profit margin report from Oracle sent shockwaves through Wall Street, pulling all three major indexes into the red.
Tech stocks led the sell-off in Asia, with Alibaba and JD.com falling in Hong Kong, TSMC sliding in Taipei, and Renesas dropping sharply in Tokyo. Hong Kong and Taipei posted some of the biggest losses, while Sydney and Singapore also declined.
Tokyo’s markets retreated after a strong start to the week spurred by optimism over the election of pro-business conservative Sanae Takaichi as ruling party leader, a move expected to usher in more stimulus and monetary easing.
