Gold breaks $3,800 as investors flee the dollar

Gold has surged past $3,800 per ounce, setting a new record amid the risk of a U.S. government shutdown and a weakening dollar. Investors are flocking to the precious metal, viewing it as a safe haven against debt concerns and inflation. 

Financial Times reported

The rally has been fueled by strong purchases from ETFs and central banks, pushing demand close to pandemic-era highs. According to the World Gold Council, September inflows into ETFs reached nearly 100 tonnes — the fastest pace since April.

Analysts note that gold is up 45% since the start of the year, driven mainly by Western investors and hedge funds expanding record positions. The “FOMO” factor (fear of missing out) has pushed even those who previously missed the rally to enter the market.