Gold prices have once again hit an all-time high, driven by investors' preference for safe-haven assets amidst factors like a U.S. federal government shutdown and a political crisis in France.

According to AP and Bloomberg News, the December U.S. gold futures price reached $4,013.10 per troy ounce (31.1034768g) at 11:30 AM Eastern Standard Time on the 7th.

This marks the first time gold futures have surpassed $4,000 per ounce.

The Wall Street Journal reported that gold prices have risen more significantly this year than during the COVID-19 pandemic and the 2007-2009 recession. Such a substantial increase in gold prices has not been seen since the inflation shock of 1979.

Gold prices have repeatedly broken their own records this year, climbing by over 50%.

Prices of other precious metals also showed an upward trend, with silver trading around $48 per troy ounce, an increase of approximately 60% since the beginning of the year.

One survey indicated that prices rose during the first half of the year due to President Trump's tariffs and trade agreements, as well as the weakest U.S. dollar in 50 years.

Furthermore, foreign media outlets reported that the possibility of further interest rate cuts by the Federal Reserve, the ongoing federal government shutdown now in its second week, and escalating political instability in France, which is experiencing the most severe fiscal deficit in the Eurozone, have all driven investors seeking a "stable haven" to trade gold.

This rally began in August, when Federal Reserve Chairman Jerome Powell signaled that the Fed would cut interest rates as the economy faced low unemployment and inflation exceeding its target.

Meanwhile, according to the World Gold Council (WGC), central banks purchased 415 tons of gold in the first half of the year. Gold has become the world's second-largest reserve asset this year, surpassing the Euro.

Bloomberg reported that China's central bank, the People's Bank of China, continued its gold purchases in September, marking its eleventh consecutive month of net buying, even as gold prices reached record highs.

Giovanni Staunovo, an analyst at the Swiss-based global financial company UBS, advised AP to be wary of portfolio concentration, stating, "Investors should be aware that gold volatility can reach 10-15%."

By NNP Chief Reporter Sung Ku Hong / Special Contribution from this publication NNP info@newsandpost.com