Скачать или смотреть GOLD SMASHES THROUGH US$4,000 — A NEW SAFE-HAVEN APEX | AZLAN ADNAN, M.A. | 8 October 2025

GOLD SMASHES THROUGH US$4,000 — A NEW SAFE-HAVEN APEX

by AZLAN ADNAN, M.A.
8 October 2025

   • GOLD SMASHES THROUGH US$4,000 — A NEW SAFE...  

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Gold prices have stormed past the US$4,000 per ounce mark for the first time in history, shaking global markets and confirming the metal’s return as the ultimate safe haven in times of fear.

Spot gold breached the barrier at 11:54 GMT, hitting US$4,036.22/oz, before settling near US$4,018.52/oz by end of day — up about 0.8% on the session and nearly 50% for the year to date.

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WHY GOLD BROKE OUT

Gold’s spectacular rise reflects a perfect storm of economic and political anxiety:

1. Anticipation of U.S. interest rate cuts
Markets now expect the U.S. Federal Reserve to begin reducing rates soon. Lower yields make holding gold — which pays no interest — comparatively attractive. Traders view gold as insurance against the erosion of currency value.

2. Escalating geopolitical tension and fiscal instability
The ongoing U.S. government shutdown, renewed conflict zones in Eastern Europe and the Middle East, and political turmoil in France and Japan have all driven investors toward hard assets. Uncertainty is the oxygen for gold’s rise.

3. Surging central bank and institutional demand
Sovereign buyers continue to add to their reserves, while gold-backed ETFs are recording heavy inflows. Analysts at Goldman Sachs recently raised their forecast, seeing gold at US$4,900/oz by end-2026, citing structural demand from emerging-market central banks.

4. Weakening U.S. dollar and easing yields
The dollar’s retreat and softening bond yields have amplified gold’s appeal, particularly for non-U.S. investors hedging against currency depreciation.

5. Momentum and fear of missing out
Technical traders and retail investors have joined the rally, pushing prices further once the US$3,900 level gave way. The surge now has a self-sustaining rhythm driven by sentiment as much as fundamentals.

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WHAT IT MEANS FOR MALAYSIA

For Malaysia and the broader ASEAN region, gold’s breakout is both opportunity and warning.

   •   Currency pressure:
The strong dollar and global risk aversion could weigh on the ringgit, which has already softened this quarter. A prolonged gold rally typically coincides with weaker emerging-market currencies, raising import costs and imported inflation.

   •   Inflation hedge and store of value:
Domestic investors may pivot further into physical gold and gold-linked unit trusts as a hedge against currency weakness. Local jewellers and refiners could see stronger margins in the short term.

   •   Portfolio rebalancing:
Wealth managers are likely to raise exposure to commodities and safe assets. Malaysian bond yields could inch higher as global investors retreat to dollar-denominated debt.

   •   Signal of fear, not growth:
While rising gold prices can look bullish, the subtext is market anxiety. The surge hints at fragile global confidence — and a slowdown in major economies that would ripple into Malaysia’s export sector.

In short, gold above US$4,000 is less a celebration than a warning flare. It reflects deep unease with currencies, debt, and leadership across major economies — a world hedging not for profit, but for survival.

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#gold
#markets
#safehaven
#inflation
#malaysiaeconomy
#federalreserve

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