:max_bytes(150000):strip_icc()/GettyImages-2257757699-e468ed0f078a4261b816783b7c650a81.jpg "Gold Surges Above ,000 Per Ounce For First Time")
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Key Takeaways
- The price of gold traded at new record highs this morning after surpassing $5,000 per ounce for the first time over the weekend.
- The precious metal’s recent rise reflects investor demand for hedges amid geopolitical and economic uncertainty, as other precious metals have also climbed in recent months.
Gold finally hit the milestone traders have been waiting for.
The spot price of the precious metal over the weekend topped $5,000 per troy ounce for the first time, and reached as high as $5,115 Monday morning. The moves came as U.S. stocks ticked higher to start the week. (Read Investopedia’s full coverage of today’s trading here.)
Why This Matters to Investors
Investor appetite for gold, which is considered a safe haven during times of volatility, continues to be strong. The price of the gold has nearly doubled over the past year as many investors have turned to the precious metal as a store of value amid economic and geopolitical uncertainty.
The seeming resolution, or at least a path toward one, of affairs involving the U.S., Greenland and mainland Europe appeared last week to have marked a cooling of geopolitical fears, though some analysts have said a broader issue—a possible realignment of the relationship between the U.S. and many of its allies and trading partners—remains in play. Fresh concerns about the possibility of another U.S. government shutdown are also factoring into investor sentiment this morning.
That’s contributed to demand for gold, long seen as a hedge against many types of uncertainty. Analysts and investors were targeting higher prices for gold, already up substantially this year, before $5,000 even hit. Some were even looking toward $6,000. (Gold first touched $4,000 in early October.)
Gold was recently up 2% at $5,100 an ounce. Other precious metals also rose, with silver surging 6% to around $110 per ounce and platinum gaining 1.5% to $2,840.
Bitcoin, which lately has traded more like a risk asset than a hedge, was at $87,400, down from an overnight high of $88,200.
