Gold surged past $4,000 an ounce, hitting record highs as investors look for safe assets amid global turmoil
In a record-breaking rally, gold prices surged past the $ 4,000-per-ounce mark in international markets on Wednesday, as investors continued to flock to safe-haven assets amid mounting geopolitical tensions, global economic uncertainty, and a weakening US dollar. In Kuwait, prices of the precious metal hit an all-time high of KD 39.40 ($128.5) per gram for 24-karat gold, KD 36.20 ($118) for 22-karat, and KD 29.60 ($96.5) for 18-karat gold.
According to market experts, gold’s enduring allure as a safe-haven asset remains strong despite its soaring prices. “Gold continues to be valued both as a long-term investment and is a part of traditions with purchases being more occasion-driven rather than discretionary,” noted Ramesh Kalyanaraman, Executive Director of Kalyan Jewelers.
Gold reached an all-time high above $4,050 an ounce on Wednesday, with silver also climbing to a record high of over $49.50 an ounce. Gold prices have soared 54 percent year-to-date, following a 27 percent gain in 2024, making it one of the best-performing assets of 2025 – outpacing rallies in global equity markets and even bitcoin. Silver is up 71 percent so far this year, benefiting from the same factors driving gold’s rally.
Analysts point to a mix of geopolitical and economic factors driving demand. “The current geopolitical uncertainty coupled with Israel’s relentless war on Gaza are pushing up the gold demand and, in turn, sending the prices higher globally. Gold purchases by central banks, exchange-traded fund (ETF) inflows and the dollar volatility add to the consistent demand for the precious metal,” said Fakrudeen Ali, a bullion market specialist in Dubai.
Kalyanaraman has observed a notable uptick in investor interest in gold. “We are encouraged by robust footfalls across all our major markets, including Kuwait. We are upbeat about the festive season, supported by healthy pre-bookings, fresh collections, and campaigns.
Overall, demand remains strong, and 22K and 18K jewelry continues to be the preferred choice for most customers,” he said.
“In many Arab traditions, gold carries both emotional and practical value. It’s often given as a token of appreciation for significant life events, such as weddings, the birth of a child, or personal achievements,” remarked Dr Nermeen Kassem, Assistant Professor of Media and Communication Studies at Gulf University for Science and Technology (GUST).
Combines elegance and financial stability
“Beyond its beauty, gold is also seen as a secure investment,” Dr Kassem added. “Women, in particular, appreciate it as something that combines elegance and financial stability.
There’s even a popular saying that captures this dual meaning – ‘zeena w khazeena’ – which translates to ‘an ornament and a safe’, reflecting how gold is both a symbol of adornment and a form of savings.”
She further noted that gold serves not only as an investment but is also widely used in industries such as electronics and dentistry, enhancing its overall desirability.
Analysts also point to broader macroeconomic concerns, including delays in key US economic data releases amid a prolonged government shutdown.
Markets are also pricing in the possibility of US interest rate cuts as global uncertainty deepens following the tariff war unleashed by President Trump. Some of them believe that, given the confluence of these factors, gold prices could continue to climb through 2025 and possibly touch $5,000 an ounce by 2026.
“I find gold as the most lucrative investment,” noted an instructor at a university in Kuwait. According to her, unlike investments in the stock market, real estate, or currency markets, investment in gold is arguably the most secure and stable. “Gold has the status as a timeless investment. It has universal demand, and that reinforces its importance in today’s ever-changing financial landscape.”
Bullion jumped 12 percent in September alone, taking silver, platinum, and palladium higher as well. Gold purchases by central banks have also buoyed prices. Central banks worldwide are on track to buy 1,000 metric tons of gold in 2025.
