Gold Hits Record $3,900 Amid US Shutdown, Global Uncertainty

Gold prices surged past $3,900 per ounce for the first time, reaching a new record amid global uncertainty, a weaker yen, and expectations of further Federal Reserve rate cuts. The U.S. government shutdown, ongoing geopolitical tensions, and political shifts in Japan have driven investors toward safe-haven assets like gold, silver, platinum, and palladium. Chinese gold mining stocks rallied sharply in response to the record gold prices and increased demand from central banks and retail investors. The weakening of the yen and the U.S. dollar, alongside market volatility, has intensified hedging demand for gold, with forecasts suggesting prices could surpass $4,000 per ounce. This trend reflects a broader "debasement trade" where investors are shifting away from major currencies toward assets perceived as safer, including Bitcoin and precious metals. Overall, these developments underscore a significant shift in global investment strategies as economic and political uncertainties persist.