Gold Soars to Record High Amid Global Uncertainty
Gold prices have soared to record highs, reaching $4,014.60 per ounce on Monday, as investors seek safety amid global uncertainty and a prolonged U.S. government shutdown. This surge has been driven by increased demand for gold, particularly through Exchange-Traded Funds (ETFs), and bullish forecasts from leading financial institutions.
Gold's 52% rise this year is supported by a weaker U.S. dollar and escalating geopolitical tensions. iShares Gold Trust (IAU) and SPDR Gold Shares (GLD) are top gold ETFs offering affordable and liquid access to physical gold. These ETFs mirror the price of gold without requiring investors to hold the metal themselves.
Goldman Sachs has raised its December 2026 gold price forecast from $4,300 to $4,900 per ounce, expecting central banks to buy around 80 tonnes of gold in 2025 and 70 tonnes in 2026. This increased demand is partly driven by China's central bank, which has been adding to its reserves for 11 consecutive months. In 2025, large asset managers and hedge funds have significantly increased their positions in gold ETFs, leading to a sharp rise in trading volumes on exchanges like COMEX and LBMA and attracting new inflows into ETFs and gold funds.
Strong inflows into gold ETFs are supporting the gold price rally, providing an easier way to gain exposure to rising prices. Each ETF unit typically represents one gram of 99.5% pure gold, traded on stock exchanges like shares. As global uncertainty persists, gold's status as a safe haven continues to draw investors, with ETFs playing a significant role in this trend.
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