Gold smashes past $4,000 per ounce but there is good reason to be worr

An extraordinary milestone was achieved overnight for the price of gold.

The spot gold price topped $4,000 an ounce for the first time on record – and futures data suggests no let up in its upwards momentum for the rest of 2025.

It was trading at $4,035 early on Wednesday morning.

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It has risen steadily since Trump 2.0 began in January, when it stood at a level around $2,600.

Sky News was quick to report on the early reasons for a spike in the price when heavy outflows were witnessed at the Bank of England.

Gold has traditionally been seen as a safe haven for investors’ money in tough times.

There has been plenty to worry about this year – not all of it down to Donald Trump.

Analysts say the surge during 2025 can be partly explained as a hedge against the US trade war and the resulting slowdown in the global economy which has hit demand for many traditional growth-linked stocks and the dollar.

Wider economic and geopolitical uncertainty, such as the tensions in the Middle East and concerns about the sustainability of US government debt levels, have also been at play.

Over this week, the political crisis in France and implications of the continuing US government shutdown have been driving forces.

But there is one other, crucial, factor that has entered the equation, particularly since the end of the summer.

Many analysts say that gold has become a collective hedge against the possible implosion of the AI-driven boom for technology stocks in the US.