Athia Sethu
Kochi, 8 October 2025
Gold. Its prices have hit an all-time high and crossed the $4,000 mark per ounce. It’s a milestone that indicates the heightened fear of investors seeking safe havens for their investments. One of the reasons for the rise in gold prices is the economic uncertainty prevailing in the world, Kedia Advisory said in a report.
One of the key drivers for investors to seek gold is the shutdown of the US government, the report said. This shutdown has led to delays in key economic reports, which make it more difficult for individuals to know how the US economy is faring. With these economic risks in consideration, speculators anticipate the US Federal Reserve to reduce interest rates in the near future, possibly in October and December. When the Fed reduces interest rates, it makes gold more attractive since it does not depend on interest like other investments, such as bonds.
Increased by more than 50% alone this year:
Adding to the doubt are political issues elsewhere in the world. There has been unrest in France and a leadership shift in Japan, which is on people’s minds. All these concerns are increasing the volatility of global markets, which is also pushing people to invest in gold as a more secure investment, the report of Kedia Advisory said.
This increase is because of trade tensions, worldwide political tension, and a weakening US dollar. Central banks, tasked with controlling the money supply of a nation, have been purchasing more gold in recent times, again driving its price up. Also, gold-backed exchange-traded funds (ETFs) registered their biggest monthly influx in over three years during September, indicating that more investors are shifting towards gold as a safe investment, the report said.
In summary, gold’s breach of $4,000 per ounce is a reflection of how uncertain the world’s economy has become. In the wake of a possible US government shutdown, concerns of political instability in other nations, and anticipation of rate cuts by the Federal Reserve, investors are seeking refuge in gold in order to safeguard their funds.