Another record high... Investors flock to the 'safe haven'

Gold Prices Hit Record High Again

Gold prices, riding investors' preference for safe assets amid the U.S. federal government shutdown and France's political crisis, have once again reached record highs.

According to AP and Bloomberg, at 11:30 a.m. on the 7th (local time) the December-delivery U.S. gold futures price recorded $4,013.10 per troy ounce. It was the first time gold futures had exceeded $4,000.

Gold prices have surged more than 50% so far this year alone, repeatedly setting new record highs. Other precious metals also rose: silver closed near $48 per troy ounce, up about 60% year-to-date.

The main reason for the rise in gold prices is identified as a surge in demand for safe-haven assets amid increased global uncertainty, including tariff policies of the Donald Trump administration. Foreign media reported that the possibility of further rate cuts by the U.S. Federal Reserve, the U.S. federal government entering its second week of shutdown, and worsening political instability in France — which faces the largest fiscal deficit in the eurozone — have also driven investors searching for "safe havens" into gold trading.

Bloomberg reported that China's central bank, the People's Bank of China, continued to buy gold in September, recording 11 consecutive months of net purchases even as gold hit record highs.

Giovanni Staunovo, an analyst at Swiss-based global financial firm UBS, told AP to be wary of portfolio (investment list) concentration, advising that "investors should recognize that gold volatility reaches 10–15%."

Shin Hyun-bo, Hankyung.com reporter greaterfool@hankyung.com