Gold Reaches $4,000 Record on Strong Investor Demand

Gold prices reached a record $4,000 per ounce on Wednesday. The increase followed heavy buying by institutional investors and strong inflows into exchange-traded funds linked to the metal.

Spot prices touched $4,022.87 per ounce in early U.S. trading. The advance was supported by expectations that the Federal Reserve will begin cutting interest rates, continued geopolitical tension, and rising demand for assets viewed as stable during periods of policy uncertainty.

The World Gold Council said investors have increased exposure to gold after an extended rise in global equities. The organization reported that investors were building protection in their portfolios, leading to a sharp rise in demand.

During the third quarter, physically backed gold ETFs recorded $26 billion in net inflows, the highest quarterly figure ever reported. Total assets in those funds climbed to $472 billion, an increase of 23 percent from the previous quarter. North American investors accounted for $16.1 billion of the total, European funds added $8.2 billion, and Asian funds increased by $1.7 billion. Trading volumes averaged $388 billion per day in September, 34 percent higher than in August.

Gold buying has expanded even while equity markets remain strong. The S&P 500 and Nasdaq are trading near record levels, supported by investor interest in artificial intelligence companies and expectations of looser monetary policy. At the same time, concerns over new U.S. tariffs announced by President Donald Trump, a budget impasse in Washington, and uneven global growth have prompted investors to seek protection through commodities.

Goldman Sachs this week raised its forecast for December 2026 to $4,900 per ounce, citing continued fund inflows and central bank purchases. Bank of America warned that prices may face resistance if inflation slows or the U.S. dollar strengthens.

Investors such as Ray Dalio and David Einhorn have continued to hold positions in gold, describing it as a safeguard against policy shifts and currency pressure. Citadel CEO Ken Griffin said the recent interest in bullion may indicate reduced confidence in the dollar.

Gold reached $4,000 per ounce after record inflows into physically backed ETFs in the third quarter. Trading volumes averaged $388 billion per day in September, and assets in gold ETFs rose to $472 billion, up 23 percent from the previous quarter. Analysts and investors are tracking these developments alongside ongoing Federal Reserve rate expectations and global market activity.

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