Gold Reaches New Peak at $4,035 Per Ounce – Could Bitcoin Be Approaching Its Next All-Time High?

Gold reached a historic peak of $4,035 per ounce on Wednesday as investors turned to safe-haven assets in response to renewed political and economic instability in the United States.

Key Takeaways:

• Gold achieved a record $4,035 per ounce as investors sought refuge amid the US government shutdown and market volatility.
• The metal has increased by 30% since April, influenced by Trump’s tariffs, a declining dollar, and unprecedented inflows into gold ETFs.
• Experts caution that the rally may slow if the Fed raises interest rates, although expectations of cuts continue to bolster bullish sentiment.

This rally, the most significant for gold since the 1970s, occurs as the US government shutdown extends into its second week, undermining confidence in fiscal stability and prompting traders to hedge against uncertainty.

Gold Rises 30% Since April as Trump’s Tariffs Disturb Global Markets

The precious metal has risen approximately 30% since April, following President Donald Trump’s tariff announcements that unsettled global markets.

Analysts indicate that the ongoing shutdown, along with a weakening dollar and increasing retail demand, has positioned gold as the premier refuge asset this year.

“The shutdown acts as a tailwind for gold prices,” stated Christopher Wong, rates strategist at Singapore’s OCBC Bank. “Investors gravitate towards safe havens during periods of gridlock, and gold has consistently performed well.”

The World Gold Council reports that inflows into gold-backed exchange-traded funds (ETFs) have reached a record $64 billion in 2025.

Dealers in precious metals note that demand is also surging among private clients. Gregor Gregersen, founder of Silver Bullion, mentioned that his firm’s customer base has more than doubled over the past year, with many clients maintaining positions for over four years.

BREAKING: Gold price hits new record high of $4035

— The Spectator Index (@spectatorindex) October 8, 2025

“Gold will eventually decline, but the current economic landscape supports an upward trajectory for at least five years,” Gregersen remarked.

Nonetheless, some analysts caution that the rally could lose momentum if the shutdown concludes or if the Federal Reserve increases interest rates.

Historically, higher yields render non-yielding assets like gold less appealing. In 2022, gold fell from $2,000 to $1,600 following aggressive Fed rate hikes aimed at curbing post-pandemic inflation.

At present, markets are anticipating that the next move will be a rate cut, enhancing gold’s attractiveness.

Bitcoin Surges Past $125K, Reflecting Gold’s Safe-Haven Momentum

Importantly, gold is not the sole asset benefiting from global unease. Bitcoin (BTC), frequently referred to as “digital gold,” has mirrored this trend, surpassing $125,000 over the weekend in its most robust October rally on record.

The leading cryptocurrency is attracting billions in ETF inflows, and JPMorgan analysts now forecast that BTC could reach $165,000 by year-end if the current momentum persists.

“As more institutional funds witness Bitcoin recovering towards all-time highs after downturns, they will likely feel more at ease as long-term holders,” noted Timot Lamarre, Head of Market Research at Unchained, a Bitcoin-native financial services firm managing over $11 billion in assets.

“If debasement is perceived as a structural issue rather than a temporary one, Bitcoin may be entering its next significant revaluation phase.”

As previously reported, increasing fiscal uncertainty in major economies is driving a shift towards Bitcoin, gold, and silver, as investors prepare for further currency debasement.

The so-called “debasement trade” has gained momentum amid rising national debts and political instability, leading to a widespread retreat from fiat assets.

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