Breaking Historic Moment Gold Prices Officially Break US$4,000
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| Breaking Historic Moment Gold Prices Officially Break US$4,000. |
Global gold prices have officially made history after surpassing the psychological level of US$4,000 per troy ounce in the spot market on Wednesday morning, October 8, 2025. According to Refinitiv data, at 09:31 AM WIB, spot gold reached US$4,006.08, up 0.56 percent. This marks the first time the precious metal has crossed that level, continuing its impressive rally since the beginning of the year.
The surge in gold prices comes amid strong demand from investors seeking safe-haven assets during a period of economic and geopolitical uncertainty. So far in 2025, spot gold prices have soared 51.82 percent, making it one of the best-performing assets this year. Meanwhile, in the US futures market, gold prices had already broken the US$4,000 mark during Tuesday’s trading session.
The main global benchmark for gold trading, London’s over-the-counter (OTC) market, remains the key reference for determining international gold prices. Analysts say the rally is mainly fueled by expectations of further rate cuts by the US Federal Reserve (The Fed), rising geopolitical tensions across multiple regions, and a weakening US dollar.
Independent metals analyst Tai Wong noted that market confidence in this gold rally is stronger than ever. “The next target is clearly the psychological US$5,000 level, especially if The Fed continues to lower interest rates,” he said. However, he warned that short-term shocks could occur if permanent ceasefires are reached in the Middle East or Ukraine. Still, Wong believes that long-term drivers like ballooning global debt, reserve diversification, and a weaker dollar will continue to support gold prices in the medium term.
UBS analyst Giovanni Staunovo added that the “fear of missing out” (FOMO) effect has also played a big role in this rally. “Many investors are still buying gold even at these high prices, and that behavior itself is pushing prices even higher,” he explained.
Political uncertainty in the United States is adding more fuel to the fire. The federal government has been in a partial shutdown for seven consecutive days as of Tuesday, delaying the release of key economic data. As a result, investors are now relying on non-government indicators to gauge The Fed’s next moves. According to FedWatch data, the market expects a 25 basis point rate cut at this month’s meeting, with another 25 bps cut possible in December.
Meanwhile, political turmoil in France and Japan has also triggered a surge in demand for gold as a hedge against risk. Institutional investors are increasingly shifting assets from stocks and bonds to gold to protect against global instability.
Over the past two years, gold has shown remarkable momentum. After rising 27 percent in 2024, it has already gained more than 50 percent in just the first nine months of 2025. Analysts predict that this bullish trend could extend into early 2026, especially if global economic uncertainty persists and The Fed continues easing monetary policy.
The record-breaking gold rally has broad implications for both producers and importers. For Indonesia, higher gold prices could boost export revenues and foreign reserves, though it may also drive up domestic jewelry prices. Local investors have begun flocking to Antam and UBS gold bars as a hedge against rupiah depreciation.
With gold now standing above US$4,000 per troy ounce, many traders believe the next key resistance levels are around US$4,200 before testing US$5,000. However, much will depend on how global monetary policies evolve and whether geopolitical tensions cool in the coming months.
