Spot gold breaks through $4,000 mark

Odaily Planet Daily reports that spot gold prices have broken through $4,000 per ounce for the first time, fueling a torrid rally, driven by market concerns about the US economy and the risk of a government shutdown. Gold prices have risen over 50% so far this year, driven by factors such as global trade uncertainty, the Federal Reserve independence debate, and concerns about US fiscal stability. With Washington locked in a government funding impasse, investors are seeking safe havens to hedge against potential market shocks, further fueling the urgency of gold's price rise. Furthermore, the Federal Reserve's renewed monetary easing cycle is also positive for gold. Investors have responded by pouring into gold exchange-traded funds, with September seeing their largest monthly inflow in over three years. Charu Chanana, a strategist at Saxo Capital Markets, said: "Gold's breakthrough above $4,000 isn't just driven by panic, but also by the need to reallocate assets. With economic data releases on hold and interest rate cuts imminent, real yields are falling, while valuations of stocks heavily weighted towards the artificial intelligence sector are already stretched. Central banks laid the foundation for this rally, and now retail investors and ETF funds are driving the next phase of gold's upward movement." (Jinshi)