What happened?
Gold jumped to a record $4,035 an ounce as investors rushed to safe havens amid a U.S. government shutdown and broader political and economic worries. The metal has rallied roughly 30% since April, helped by Trump’s tariffs, a weaker dollar, and record inflows into gold ETFs. The move is the strongest since the 1970s and comes alongside big gains in Bitcoin, showing a broad shift into perceived stores of value.
Who does this affect?
Retail and institutional investors who are reallocating portfolios toward gold, Bitcoin, and other safe assets feel the biggest impact. Gold miners, bullion dealers, and ETF providers are seeing surging demand and higher revenues as flows accelerate. Central bankers and policymakers also face pressure because their rate and fiscal decisions could quickly amplify or reverse this trend.
Why does this matter?
The rally signals a major reallocation of capital into safe-haven assets, which can weaken the dollar, push yields lower, and lift commodity-linked stocks. That shift increases volatility for equities and bonds, complicates portfolio decisions, and influences where big money sits until political or monetary clarity returns. If the Fed leans toward cuts or the shutdown drags on, the rally could continue, but a surprise rate hike or fiscal resolution would likely trigger a sharp pullback.