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The price of gold surpasses $4,000 per ounce for the first time

Traders have been jumping on the precious metal all year, triggering a rise of more than 50%.

Gold bullion

Gold bullionAFP.

Williams Perdomo
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Williams Perdomo

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The price of gold surpassed $4,000 per ounce for the first time Wednesday. Traders have been jumping on the precious metal all year, triggering a rally of more than 50%, on the expectation, among other issues, of an interest rate cut in the country.

This Wednesday, gold reached a high of $4,006.68 per ounce in Asian markets. Silver also came within a few dollars of its all-time high.

Used in jewelry, industry or as a reserve, the yellow metal has always represented a "safe haven value" par excellence because it retains its intrinsic value.

The government shutdown, AFP highlights, is adding to investors' sense of unease as key economic data, including on employment, has been postponed, complicating the situation for the Federal Reserve as it decides on its interest rate plans.

Gold's attractiveness was also bolstered this week by political turmoil in France, where the country's prime minister resigned and his predecessor urged President Emmanuel Macron to resign and call early elections.

A historic rise

In that sense, the precious metal has risen more this year than during the covid-19 pandemic and the 2007-2009 recession, the Wall Street Journal explained. "Not since the 1979 inflationary crisis has gold soared so much in one year," the media outlet detailed.

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