The global gold market is experiencing unprecedented growth: the value of the precious metal is rapidly approaching the record mark of $4,000 per troy ounce – the first time in the last 45 years. At the opening of trading on Tuesday, the price of gold rose by 0.4%, reaching $3,976.25, continuing a two-day price rally.
This is reported by Finway
Reasons for the Rise in Precious Metal Prices
Experts attribute the strong increase in the value of gold to political uncertainty in the U.S., particularly the government shutdown and expectations regarding changes in the monetary policy of the Federal Reserve. Investors are actively investing in gold as a safe-haven asset, as the shutdown of several federal agencies in the U.S. has deprived the market of key economic data, complicating the forecasting of future actions by the Fed.
“Investors are actively investing in gold as a safe asset, as the halt of federal structures in the U.S. has deprived the markets of important economic data, complicating the forecasting of the Fed’s actions.”
Record Figures and the Impact of Global Factors
Since the beginning of 2025, the price of gold has increased by more than 50%, demonstrating a series of historical highs. If the upward trend continues, this year will become record-breaking for the pace of gold price increases since 1979. Among the key factors supporting the current rally, experts cite active purchases of the precious metal by central banks and an increase in investments in gold ETFs. In the Singapore spot market, gold was trading at $3,961.33 per ounce, while a 0.1% decline in the Bloomberg Dollar Spot Index further stimulated demand for gold.
Amid the gold market frenzy, silver remained stable at $48.77 per ounce, just one dollar below the historical high of 1993. The prices of platinum and palladium are also rising, indicating increased investor interest in other precious metals.