Gold hits fresh record after 50% price jump

Gold has rocketed to a new all-time high as investors flock to the safe-haven asset amid worries over global economic and political uncertainty.

The precious metal raced above 4,000 US dollars (£2,987) an ounce for the first time, with its rally showing no sign of slowing.

The price of gold has been sent soaring in recent months, spurred on by US President Donald Trump’s trade tariff war, which kicked off in April.

The US government shutdown, which is now in its second week, has also added to investor nerves and sent them rushing for the yellow metal.

Investors traditionally view gold as providing protection from wider turbulence and high inflation.

Its price has jumped more than 50% this year alone due to concerns over rising government debt worldwide, as well as political instability and expectations for lower interest rates in major economies, including the UK and US.

BestBrokers said central banks worldwide have been stockpiling gold in response to the rally, with global gold reserves rising to an unprecedented 4.013 trillion euros (£3.48 trillion) in October so far, up 37.5% from the end of 2024.

The US remains the world’s largest gold holder with 8,133 tonnes, now valued at 1.04 trillion dollars (£776 billion), marking the first time any nation’s reserves have surpassed the one trillion US dollar threshold.

Ewa Manthey, commodities strategist at ING, said: “Gold has staged a historic rally, doubling in less than two years, spurred by central bank buying as it diversifies away from the US dollar, President Donald Trump’s aggressive trade policy and conflicts in the Middle East and Ukraine.”

She added: “Markets are pricing in a quarter-point (US rate) cut this month, which would further benefit gold, as it doesn’t pay interest.

“Policy uncertainty and growing bets on Federal Reserve easing are keeping safe-haven demand strong.”

Ahmad Assiri, a research strategist at Pepperstone, said the rush for gold was set to continue for some time yet.

He said: “Gold’s message is clear – in a world where the gap between valuations and policy credibility continues to widen, gold remains the timeless asset that bridges enduring value with a renewed relevance.”