Posted on 10/07/2025 9:01:30 AM PDT by Red Badger
Key Points
Gold futures broke above $4,000 per ounce on Tuesday for the first time.
The precious metal has soared this year as investors seek a safe haven from a weaker dollar and geopolitical and economic uncertainty.
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Gold prices hit $4,000 for the first time ever Tuesday as investors seek a safe haven from a weaker dollar, geopolitical volatility, economic uncertainty and stubborn inflation.
Gold futures were last trading at $4,005.80 per ounce. Prices have gained more than 50% this year as the U.S. dollar index has dropped 10% and President Donald Trump upends the global trade system and threatens the independence of the Federal Reserve.
Central banks and retail investors are buying gold at a rapid pace. China and other countries are diversifying away from U.S. Treasurys and into gold after Washington imposed stiff sanctions on Russia over its invasion of Ukraine in 2022, and retail investors are looking for protection against inflation.
The latest leg higher in the precious metal came after the Fed cut interest rates in September for the first time this year, making short-term debt instruments like Treasury bills less attractive to investors. The market is expecting two more reductions in the fed funds rate, now 4.00% to 4.25%, before year-end. The Fed next meets in three weeks, on Oct. 29.
Ray Dalio, founder of Bridgewater Associates, recommended Tuesday that investors put “something like 15% of your portfolio in gold.” Debt instruments are “not an effective store of wealth,” Dalio said at the Greenwich Economic Forum in Connecticut.
Gold is “the one asset that does very well when the typical parts of your portfolio go down,” he said.
Bank of America urged investors on Monday to approach gold cautiously as prices headed toward $4,000. BofA warned clients that gold faces “uptrend exhaustion,” which could lead to “a consolidation or correction” in the fourth quarter.
— CNBC’s Yun Li contributed to this report.
I was thinking of decimal measurements of "four thousandths" on a micrometer which is .004 but is represented as a fraction of 4/1000, versus "one four thousandth" or 1/4000 which is .00025
It seems that way but the dollar dropped by 2/3.
Spot just hit $4k.
In George Washington’s time a finely tailored, custom made suit of clothing would have cost about an ounce of gold.
Today it would cost about the same..........
Silver Shortage “This Is Not A Drill” - Mike Maloney
https://www.youtube.com/watch?v=eYC9CuZEw2c
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