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.
Ping
Hmm.
And every time a milestone is hit a bunch of people sell, only realizing a few months later how badly they wish they had not.
I bet a lot of folks were waiting for this nice round number, to sell.
Will probably now go below $4,000 for a time.
GMTA
Meh, I just map and plan strategy on my prepper frens:>]
As has been said before on this forum it’s not the gold thats going up it’s the currency going down.
Gold hasn’t increased in value - the dollar dropped, now at 1 / 4,000th (.004) of an ounce.
Gold hasn’t increased in value - the dollar dropped, now at 1 / 4,000th (.004) of an ounce.
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Good to see someone who understands, most can’t figure it out. That said, we entered a generational Gold ( PM’s) Bull market…and No, no comparison to the last Gold Bull for many reasons…the primary is the entire world’s currencies are plummeting in purchasing power, with the world de-dollarizing into Gold, now a “Tier One asset”.
Gold Price Performance USD
Change Amount %
Today +18.30 +0.46%
30 Days +315.70 +8.68%
6 Months +971.46 +32.59%
1 Year +1,329.80 +50.71%
5 Year +2,056.91 +108.54%
20 Years +3,477.12 +732.18%
goldprice.org - 12:31 NY Time
Due note Silver is now outperforming zGold- as does in every PM bull.
I bought some silver American Eagles a few years ago. They have tripled at about $60.
Up until 1971 the price of gold in the USA was fixed at $35 an ounce.
I still have the Krugerrands that I bought for $150 each in 1977.
I went into PMs kicking and screaming. For years my wife was trying to get us to buy some gold. We achieved debt free status in 2022 and upped our 401K contributions and opened a brokerage account. It was at that point I relented and started buying silver. A few months into that our first gold. I think I’m pretty much hooked for life but the main thing is we think of it as a place to put money not an investment.
National Lampoon magazine had an article about that time that suggested, if you were really smart you would skip college and spend your guaranteed student loans on Krugerrands. heh
I cashed out my silver coin collection at a pawn shop when the Hunt brothers were paying nine times face value to squeak by my last semester of grad school.
Gold at Record Still Below Inflation-Adjusted 1980 High
Nevermind what I just posted. It is an old story.
Wonder how many read their history books where an Oz of Gold was worth $19.
I remember an old 1959 movie EDGE OF ETERNITY in which men steal gold valued at $32 an OZ and fly it to Mexico to get a higher price for it. Still less than $50.
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