Spot Gold Hits $4,000 for the First Time as Global Uncertainty Drives Safe-Haven Surge

Gold prices surged to a historic high on Wednesday, with spot gold breaking the $4,000 per ounce mark for the first time, as mounting global uncertainty sent investors rushing toward traditional safe-haven assets.

The metal’s latest rally reflects growing concerns over the U.S. government shutdown, political turbulence in Europe, and persistent inflationary pressures. According to Vivek Dhar, head of commodities research at the Commonwealth Bank of Australia, the rise “likely reflects safe-haven demand tied to the U.S. government shutdown and the resignation of France’s Prime Minister Sebastien Lecornu.”

The surge follows a volatile summer marked by tariff-driven tensions between major economies. Gold’s role as a hedge against instability appears stronger than ever, especially as investors weigh the impact of slowing global growth and fiscal stress in developed markets.

Meanwhile, Asia-Pacific markets traded mixed on Wednesday, diverging from Wall Street’s losses. The World Bank recently raised its regional growth outlook, but investor sentiment remained cautious amid policy shifts and geopolitical risk. Hong Kong’s Hang Seng Index slid 1.01%, even as CF PharmTech shares soared more than 224% in their Hong Kong trading debut. The respiratory-focused pharmaceutical company raised around $78 million, with shares priced at HKD 14.75 each, part of a broader rebound in Hong Kong’s IPO market, which collected about $14.1 billion in the first half of 2025.

In Japan, the Nikkei 225 was little changed while the Topix gained 0.66%. The Japanese yen weakened further, falling 0.38% to 152.48 per U.S. dollar, after touching the 150 level earlier this week. In Australia, the S&P/ASX 200 dropped 0.3%, while Mainland China and South Korea remained closed for holidays.

Adding to regional monetary shifts, the Reserve Bank of New Zealand cut its benchmark interest rate by 50 basis points to 2.5%, citing weak domestic activity and uncertainty in global policy. “Economic activity through the middle of 2025 was weak,” the bank said, adding that “global policy uncertainty” has constrained output in key industries. The New Zealand dollar weakened 0.9% to 0.5746 per U.S. dollar following the announcement.

In the United States, equities retreated overnight as Wall Street digested disappointing earnings from Oracle and the continued government shutdown. The S&P 500 slipped 0.38% to 6,714.59, snapping a seven-day winning streak, while the Nasdaq Composite fell 0.67% to 22,788.36. The Dow Jones Industrial Average ended 91.99 points lower at 46,602.98.

As uncertainty deepens across global markets, gold’s rise underscores its enduring role as a store of value. With inflation, political instability, and central bank policy shifts weighing on confidence, analysts expect safe-haven demand to remain strong, keeping the metal’s record-breaking rally intact through the final quarter of 2025.