Gold has once again taken center stage in global markets, with prices surging to unprecedented levels — nearing the $4,000 per ounce mark on Tuesday — a threshold that could reshape investors’ perception of safe-haven assets.

In early trading, spot gold rose sharply by 1.9% to around $3,948 per ounce, extending its climb toward new record highs. The broad and rapid rally was driven by deep economic uncertainty, falling bond yields, and a renewed rush toward financial safety.

SPDR Gold Shares (GLD) — the world’s largest gold-backed ETF — jumped to $364.38, signaling massive institutional inflows and revived interest from global investors. Analysts say this is no random move, but a sign that gold is reclaiming its place as the world’s preferred hedge against turmoil.

Market strategists describe this as a “perfect storm” of factors: expectations of interest rate cuts, a weaker US dollar, and record central bank purchases — all combining to create ideal conditions for an explosive rally. Investors now see gold not merely as a commodity, but as a strategic long-term wealth preservation tool.

Expectations of rate cuts from the Federal Reserve have strengthened demand for the metal, as traders bet on a looser monetary policy before year-end, while the dollar’s weakness made gold more appealing to international buyers.

Central banks have also played a key role, with continued buying from China, India, and other nations lifting prices — a trend analysts expect to persist in the near term.

From a technical standpoint, the outlook remains bullish. Goldman Sachs raised its 2026 price target to $4,900 per ounce, citing sustained safe-haven flows and ample global liquidity. Market strategists believe gold could soon breach $4,000 if current conditions hold.

For investors, this rally brings both opportunities and risks: gold thrives in low-rate, uncertain environments, but could face short-term corrections if monetary policies shift unexpectedly or inflation cools faster than anticipated.

ETF activity reflects the powerful momentum — GLD rose 1.87%, while IAU climbed 1.90% in early trading. Traders closely watch these funds as gauges of investor sentiment.

The key drivers ahead include Fed commentary, central bank purchases, safe-haven demand, and post-shutdown US economic data — any of which could accelerate or slow the rally.

As prices approach historic levels, market participants are watching developments closely. Analysts and investors agree that this surge is powered by a convergence of economic uncertainty, monetary policy expectations, and robust global demand.

With gold nearing $4,000, the coming weeks could mark one of the most closely watched upward runs in years.

Why is gold rising so fast again?

The recent surge stems from overlapping economic and political developments, as investors seek safety amid growing fears about global growth, inflation, and geopolitical tensions.

A key driver is the Fed’s anticipated policy shift toward rate cuts. When interest rates fall, gold becomes more attractive because it doesn’t lose value to yield-bearing assets like bonds. With inflation remaining above target in many economies, real interest rates stay low — strengthening gold’s appeal as a store of value.

At the same time, the weaker US dollar has made gold cheaper for foreign buyers, spurring renewed global demand. This mix of lower yields and a soft dollar has placed gold in one of its strongest uptrends in years.

What role are central banks playing in this rally?

Massive central bank purchases — particularly from China and other major economies — have been pivotal in driving prices higher. Analysts warn this trend is likely to persist, with forecasts placing gold near $4,900 per ounce by 2026.

Nations such as China, India, and Turkey have steadily built their gold reserves throughout 2025 as part of a broader effort to hedge against currency risks, trade sanctions, and financial instability. This ongoing official-sector demand has provided the market with long-term structural support.

Experts note that central bank buying acts as a stabilizing force because these institutions invest over multi-year horizons, keeping prices supported even when short-term traders take profits.

The global shift toward gold-backed reserves is now seen as a hedge against both inflation and geopolitical risks — reinforcing gold’s status as a strategic crisis asset.

Is fear and uncertainty driving gold’s comeback as a safe haven?

Yes — and the trend appears to be accelerating. Political instability and economic shocks across multiple regions have once again pushed investors toward gold.

Leadership changes, shutdown threats, and recession risks have all rattled market confidence. Each dip in risk appetite sends gold higher.

Analysts note that gold performs best in times of uncertainty and declining trust in traditional assets. Stock market volatility, shifting bond yields, and currency weakness are all steering investors toward precious metals.

This mix of caution and global slowdown continues to sustain strong demand from both retail and institutional buyers.

Are large investors and funds joining the gold rush?

Yes. Major institutions are pouring money back into gold via ETFs and other vehicles, signaling that the rally is supported by deep capital flows, not just retail speculation.

Investment funds are increasing exposure to gold as part of broader hedging strategies, especially with high stock valuations and ballooning global debt levels prompting a shift toward hard assets.

ETFs tracking gold have seen multi-billion-dollar inflows over the past month — what analysts call the “fear premium,” or the extra price investors pay for safety in times of anxiety.

This institutional wave has strengthened gold’s technical position, with traders now targeting the key psychological threshold of $4,000 per ounce — a level that could open the door to further gains.

Can gold break $4,000 — or is a correction coming?

Gold is now testing critical resistance near $4,000 — a level that could determine whether the metal continues its climb or pauses for consolidation.

If momentum persists, analysts expect prices to reach between $4,100 and $4,300 per ounce in the short term, with some projections placing the longer-term target at $4,900 by late 2026 — supported by central bank buying and easier monetary policies.

However, downside risks remain: if the Fed delays rate cuts or inflation cools faster than expected, gold could weaken temporarily. A stronger dollar or renewed risk appetite might also trigger mild profit-taking.

Still, the broader outlook remains bullish. As long as real yields stay negative and economic uncertainty persists, gold’s uptrend appears well anchored.

What’s next for gold in the coming months?

In the near term, investors should watch Fed comments, inflation data, and ETF flows — all key determinants of whether gold sustains its climb or enters a consolidation phase.

Current support zones lie between $3,850 and $3,900 per ounce, which could present buying opportunities if short-term pullbacks occur.

A decisive break above $4,000 could signal the start of a new long-term rally that draws even greater institutional participation.

Gold remains the best-performing asset of 2025, outpacing stocks, bonds, and even cryptocurrencies. For investors, it continues to embody safety, stability, and protection against inflation — the same reasons it has served as a timeless store of value for centuries.

Copper prices rose slightly on Tuesday, supported by ongoing mining disruptions, but remained below the 16-month highs reached in the previous session due to the strength of the US dollar.

Three-month copper on the London Metal Exchange (LME) gained 0.3% to $10,684 per metric ton as of 09:40 GMT, after touching $10,800 on Monday — its highest level since May 2024.

Copper prices on the LME have risen 21% since the start of the year, driven in recent weeks by production problems at major mines in Chile, the Democratic Republic of Congo, and Indonesia.

Operations at Indonesia’s Grasberg mine — one of the world’s largest copper mines — have been halted for nearly a month following a deadly mudslide that killed seven workers. Additional disruptions have occurred at the Kamoa-Kakula mine in the DRC and the El Teniente mine in Chile.

Dan Smith, managing director at Commodity Market Analytics, said: “The disruptions are enormous, and so I expected copper to climb faster than it has, but the dollar has strengthened somewhat.”

He added that one bearish factor possibly explaining the slower rally is the slowdown in electric vehicle sales in several regions worldwide.

In China, the world’s largest metals consumer, average monthly growth in electric vehicle sales stood at around 36% in the first half of the year but slowed to 6% in August.

Smith noted that LME copper is approaching a key resistance range between $10,750 and $11,000 — a zone it has failed to break three times before, in May 2021, March 2022, and May 2024.

“If we retreat from this level,” he said, “it would be a strongly bearish technical signal.”

A stronger US dollar also limited copper’s gains, benefiting from weakness in the euro and yen. A higher dollar makes commodities priced in it — such as metals — more expensive for holders of other currencies.

Among other base metals, aluminum slipped 0.2% to $2,719.50 per ton, nickel was flat at $15,480, lead eased 0.1% to $2,003.50, tin fell 0.7% to $36,555, while zinc gained 0.3% to $3,015.

Chinese markets remain closed from October 1 to 8 for the “Golden Week” holiday.

Bitcoin remained largely stable on Tuesday after hitting new record highs above $126,000 in the previous session, supported by strong inflows into US spot exchange-traded funds (ETFs), growing hedging against the weakening dollar amid the prolonged US government shutdown, and the seasonal optimism known as “Uptober.”

The world’s largest cryptocurrency reached an all-time high of $126,186 on Monday but later pared gains as some investors took profits.

As of 02:05 a.m. Eastern Time (06:05 GMT), Bitcoin was up 0.4% at $124,427.9 after surging more than 10% last week.

ETF inflows and hedging against currency debasement support Bitcoin

Data from SoSoValue showed that US spot Bitcoin ETFs recorded net inflows of $3.2 billion for the week ending October 3, the second-highest weekly total since these funds were launched earlier this year.

On October 3 alone, daily inflows reached about $985 million.

This strong demand through ETFs allowed institutional investors to gain exposure to Bitcoin without direct ownership, boosting bullish momentum in the market.

The ongoing US government shutdown has also fueled the rally, as the political stalemate in Washington — which has delayed key economic data releases and heightened policy uncertainty — pushed investors toward hard, non-sovereign assets such as gold and Bitcoin.

This move is often described as a “debasement trade,” where capital shifts from fiat currencies into tangible or digital assets viewed as safer stores of value amid inflation or monetary easing.

It also coincides with the historically positive October trend — known among traders as “Uptober” — a period in which cryptocurrency returns tend to rise.

However, profit-taking followed the record peak, leading to a partial pullback in Bitcoin prices during Tuesday’s trading.

Galaxy Digital launches a competitor to Robinhood

Galaxy Digital (TSX: GLXY) announced the launch of its new “GalaxyOne” platform — a commission-free trading app for stocks and cryptocurrencies — in a direct challenge to Robinhood (NASDAQ: HOOD), whose shares fell 3% on Monday following the news.

The new platform offers services similar to Robinhood’s, including access to over 2,000 stocks and ETFs, as well as cryptocurrency trading and high-yield cash accounts.

Galaxy Digital’s shares rose 7% on Monday after the announcement.

Oil prices were steady on Tuesday as investors assessed a smaller-than-expected production increase by the OPEC+ alliance scheduled for November, amid concerns about a potential global supply surplus.

Brent crude futures rose by 9 cents, or 0.14%, to $65.56 a barrel as of 11:54 GMT, while US West Texas Intermediate (WTI) futures added 8 cents, or 0.13%, to $61.77 a barrel.

Giovanni Staunovo, an analyst at UBS, said: “Oil prices remain resilient as the market watches whether the increase in floating oil inventories will translate into higher stockpiles in OECD countries, while preliminary data from India suggest continued strong oil demand in September.”

The contracts had ended the previous session more than 1% higher after the Organization of the Petroleum Exporting Countries (OPEC) and its allies — including Russia and several smaller producers, collectively known as OPEC+ — decided to raise total output by 137,000 barrels per day starting in November.

The decision ran counter to market expectations for a bolder increase, signaling that the group remains cautious amid projections of a potential oversupply in the fourth quarter of this year and into next year, according to analysts at ING Bank.

On the demand side, India’s fuel consumption rose 7% year-on-year in September, according to data from the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum.

As for supply, J.P. Morgan reported that global oil inventories — including crude stored on tankers — rose every week during September, adding about 123 million barrels for the month.

In China, the government is accelerating the construction of oil storage sites as part of a campaign to strengthen its strategic reserves, according to official data, trade sources, and industry experts.

On the geopolitical front, tensions continue to lend support to oil prices, as the ongoing conflict between Russia and Ukraine keeps energy assets under pressure and heightens uncertainty over Russian crude supplies.

Industry sources said on Monday that Russia’s Kirishi refinery shut down its most productive distillation unit after a drone attack caused a fire on October 4, and recovery operations are expected to take about a month.