Gold Prices Surge to Record High on Political Uncertainty, Strong Demand
Gold prices surged to an all-time high on Wednesday, fuelled by political instability in the US and robust global demand. The precious metal's spot price climbed 0.2% to $3,872.21 per ounce in Singapore.
Central banks and gold-backed ETFs have been consistently buying gold, driving up its price. In September, the Bundesbank reported record inflows into gold-related ETFs, with gold-backed ETFs being the main contributors. This surge in demand has pushed gold prices to unprecedented levels in 2025.
Other precious metals also saw gains. Silver, platinum, and palladium all increased in price, riding on gold's coattails.
The US government shutdown could further stimulate demand for safe-haven assets like gold. The Federal Reserve's rate cuts have also contributed to gold's rally. This year alone, the gold price has risen by over 47%, on track for its largest annual gain since 1979.
Gold prices reached a new record high on Wednesday, boosted by political uncertainty, central bank purchases, and strong demand from gold-backed ETFs. Other precious metals also saw price increases. The US government shutdown and the Federal Reserve's rate cuts have further supported gold's rally, with the metal on track for its largest annual gain in nearly four decades.
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