The surge in gold prices shows no sign of stopping. The yellow metal has hit a new record high and is now heading towards $4,000 amid political uncertainty in the United States. What is at stake?
Gold stronger than ever, heading towards $4,000 an ounce?
It’s now become commonplace: gold has once again broken an all-time record. The yellow metal has made a series of spectacular breakthroughs in 2025, against a backdrop of geopolitical instability. This morning, the price per ounce exceeded $3,870 for the first time, after a 3.2% increase over the week.
This is the 38th time that gold has broken its record in 2025. The yellow metal has been rising almost constantly in recent months, gaining 48% since the beginning of the year.
Risk of a shutdown and geopolitical tensions
Gold, considered the ultimate safe haven, is attracting investors in this turbulent geopolitical climate.
In the United States, federal funding expires on September 30, 2025. Without a budget agreement in Congress, a shutdown looms, with hundreds of thousands of civil servants potentially being furloughed.
Meanwhile, tensions are running high in Europe, with drones, possibly Russian, flying over NATO countries, raising tensions a notch. In Israel, a tentative peace agreement was outlined yesterday, but it appears fragile.
All of this has combined to continue driving up the price of gold. The target is now the psychological threshold of $4,000.
There has also been some growth in the price of Bitcoin (BTC), sometimes referred to as “digital gold.” It has gained 1.7% over the last 24 hours, after a rather sluggish week. If geopolitical tensions remain high, it is likely that safe-haven assets such as gold will continue to perform well in the coming weeks.
