Washington D.C : Gold prices soared past the historic $4,000-per-ounce mark on Tuesday, driven by mounting global economic uncertainty, expectations of imminent U.S. Federal Reserve rate cuts, and strong safe-haven demand. Spot gold climbed to around $4,011 an ounce, marking a new all-time high and extending its record-setting rally from earlier in the week.

Analysts attribute the surge to investor concerns over the prolonged U.S. government shutdown, which has delayed key economic data releases and heightened fears of political instability in Washington. The weakening U.S. dollar and speculation that the Federal Reserve could initiate a 25-basis-point rate cut later this month have further strengthened gold’s appeal.

The ongoing crisis in Europe and political turbulence in Japan have also added to global uncertainty, prompting a steady inflow of funds into gold-backed exchange-traded funds (ETFs). Global ETF holdings have risen sharply in 2025, reversing last year’s outflows, while central banks—particularly in China—have continued to expand their gold reserves.

In India, demand for physical gold remains robust, supported by festive season buying and the metal’s status as a trusted store of value amid volatile markets. Market analysts suggest that domestic prices are expected to stay above ₹7,500 per gram if global trends persist.

Financial experts note that the $4,000 level represents a psychological barrier for investors. However, with geopolitical tensions and economic uncertainty showing no signs of easing, many predict that gold could advance toward the $4,500–$5,000 range in the coming months.

Traders caution that any resolution to the U.S. fiscal deadlock or stronger-than-expected economic data could trigger short-term profit-taking. Yet, with investors increasingly drawn to safe-haven assets, gold’s upward momentum appears far from over.