SEOUL, October 06 (AJP) - Gold prices have reached an all-time high, surpassing $3,900 per troy ounce for the first time. This surge is attributed to increased demand for safe-haven assets amid the ongoing U.S. federal government shutdown.
According to Reuters, gold prices briefly hit $3,919.59 early Monday, with December futures reaching $3,926.80. Gold has risen 49% this year, frequently setting new records.
The price increase is driven by the prolonged U.S. government shutdown, economic and political uncertainties surrounding President Donald Trump, and expectations of Federal Reserve interest rate cuts.
Analysts note that central banks are diversifying portfolios beyond the dollar, boosting demand for safe assets like gold. Traditionally, gold is seen as a secure asset during crises, leading to increased investment amid uncertainty.
Market experts predict gold could soon exceed $4,000 per ounce. HSBC's recent report suggests that if central banks continue to buy gold and institutional investors diversify portfolios, prices may rise further.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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