Gold prices shattered records on Thursday, breaching the $4,000-per-ounce threshold for the first time in history as investors sought refuge from escalating geopolitical risks and shifting monetary policies. Futures contracts surged to $4,050 in early trading, marking a 9% weekly gain fueled by market anxieties over prolonged instability.
Analysts attribute the rally to a “perfect storm” of factors: renewed tensions in the Middle East, concerns about China-U.S. trade relations, and growing expectations of U.S. Federal Reserve rate cuts. The precious metal has gained 28% year-to-date, outperforming most traditional assets as central banks intensify gold purchases.
For Asian markets, the surge carries mixed implications. While investors in Tokyo and Singapore report increased allocations to bullion ETFs, jewelry retailers across India and the Chinese mainland face softening consumer demand at current price levels. Economists warn the rally could complicate inflation control measures in Southeast Asia, where gold remains integral to cultural practices and household savings.
Market strategist Li Wei of Shanghai Gold Exchange notes: “This isn’t just about safe-haven demand. Gold’s breakout reflects structural shifts in global asset allocation as BRICS nations develop alternative trade settlement mechanisms.”
