Gold Soars to Record $3,575 as Investors Flee to Safety

Gold surged to a historic peak of $3,575 an ounce on Thursday, fuelled by intensifying demand from investors seeking safety amid growing economic and geopolitical uncertainty.

The rally comes on the back of expectations that the US Federal Reserve will cut interest rates this month, a weakening dollar, and record central bank purchases of bullion.

Nigel Green, CEO of global financial advisory firm deVere Group, said the metal’s momentum reflects deep investor unease. “Gold’s surge into record territory underscores the scale of unease among investors. We predict prices will hit $5,000 per ounce by the end of the first quarter of 2026. The drivers are already in place and momentum is compounding,” he said.

A softer US labour market and rising recession fears have strengthened the case for Fed easing, which would further diminish the appeal of cash deposits and bonds while boosting gold. The dollar index has slipped to its weakest level in more than a month, making bullion cheaper for overseas buyers.

Silver has also joined the rally, breaking above $40 an ounce for the first time since 2011, underscoring a broad flight to precious metals.

Central banks remain major buyers, with the People’s Bank of China expanding its holdings for 22 consecutive months and Middle Eastern and Asian sovereigns accelerating purchases to reduce reliance on the dollar.

“When overwhelming demand collides with flat supply, there is only one logical direction for price,” Green added, citing stagnant mine output and rising environmental costs.

Private investors are following suit, with ETFs reporting strong inflows and sovereign mints seeing elevated bullion sales. Institutions are increasingly embedding gold into core holdings rather than treating it solely as insurance.

Markets are now awaiting the US non-farm payrolls report on Friday, expected to show further labour market weakness. At the same time, trade frictions and fiscal uncertainty under President Trump continue to unsettle investors.

“Gold thrives in environments where governments appear unpredictable,” Green noted. “Attacks on the independence of the Federal Reserve, erratic trade policy and spiralling deficits all erode confidence in fiat currencies. Investors respond by turning to assets that are politically neutral and globally recognised.”