Gold bars on US dollars/ Envato Market
by Emmitt Barry, with reporting from Washington D.C. Bureau Staff
(Worthy News) – Gold surged to an unprecedented $4,000 a troy ounce on Tuesday, marking a milestone that underscores growing investor unease about the U.S. economy and the global financial order.
The yellow metal’s rally–up more than 50% so far this year–has eclipsed gains seen during major crises such as the 2007-09 Great Recession and the 2020 pandemic. Not since the inflationary turmoil of 1979 has gold soared this dramatically in a single year.
Unlike past surges driven by immediate economic shocks, the latest climb reflects deepening anxiety about political and monetary instability. Analysts point to concerns that President Donald Trump’s efforts to reshape global trade and pressure the Federal Reserve could destabilize the postwar system anchored by the U.S. dollar.
The dollar’s weakness–its poorest first half in more than five decades–has sent investors scrambling toward tangible assets. “That represents the perfect storm for gold,” said Aakash Doshi, head of gold strategy at State Street Investment Management.
The rally accelerated in August after Fed Chair Jerome Powell signaled plans to begin cutting interest rates despite persistent inflation and strong employment data. The shift stoked fears of long-term inflation and higher bond yields–conditions that have historically boosted gold prices.
Central banks have fueled the surge as well. They purchased 415 tons of gold in the first half of the year, according to the World Gold Council, making the precious metal the world’s second-largest reserve asset, surpassing the euro.
Meanwhile, American investors have joined the rush. In September alone, gold-linked exchange-traded funds (ETFs) saw record inflows of $33 billion, data from Morningstar Direct shows. From Costco’s gold bars to Wall Street trading screens, demand for bullion has rippled through every corner of the economy.
The boom has also revitalized the mining sector, with some gold-mining stocks outpacing even the market’s artificial-intelligence leaders. One mining ETF has nearly doubled in value over the past year–outperforming tech giant Nvidia’s meteoric rise.
As gold continues to glisten amid global uncertainty, many see its rally as both a symptom of and a hedge against an increasingly volatile financial era.
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