Gold smashes $4,000 barrier for first time amid US shutdown crisis

Gold surged to a historic high, breaking above $4,000 an ounce for the first time as investor anxiety over a potential U.S. government shutdown and broader economic concerns intensified the metal’s blistering rally.

The precious metal climbed as much as 1.1% to $4,026.69 on Wednesday, cementing a milestone that seemed distant just two years ago. This year alone, gold has jumped more than 50%, with its returns this century now outstripping those of equities.

The immediate driver is a flight to safety as a funding impasse in Washington threatens to shut down the U.S. government. This compounds existing worries over global trade tensions and the independence of the Federal Reserve, which is facing unprecedented public pressure from President Donald Trump.

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Central banks have been a foundational buyer, accelerating purchases since 2022. This structural shift, combined with robust inflows into gold-backed ETFs, has created a powerful momentum behind the rally. As billionaire investor Ray Dalio noted this week, the current surge echoes the 1970s and positions gold as a superior safe haven to the U.S. dollar.

With the conditions for the rally still in place, some major banks are forecasting further gains. Goldman Sachs, for instance, recently raised its gold forecast to $4,900 an ounce by the end of 2026.