Spot gold has topped $4,000 an ounce for the first time this year, with silver and platinum also rising. Experts say the rally reflects investors seeking safety amid growing market uncertainty.

Wall Street

Gold prices have surpassed $4,000 an ounce for the first time, driven by concerns over the U.S. economy and heightened geopolitical and trade uncertainties. This surge has been accompanied by significant gains in other precious metals, with silver up 65% and platinum up 85% for the year. 

While some investors view gold as a strong diversifier and a hedge against inflation, experts note that its correlation with equity markets is higher than often assumed, and its value is difficult to assess due to the lack of cash flows. Analysts suggest that although gold can play a role in portfolios, particularly during periods of market stress, the potential for further sharp increases may be limited given its already elevated price.

Gold, precious metals surge amid flight to safety

Spot gold prices have climbed above $4,000 an ounce for the first time. That's as concerns over the U.S. economy add fresh momentum to a scorching rally. Bullion has now jumped more than 50% this year in the face of rising trade and geopolitical uncertainties. Let's get more with St. James Plays Asia and Middle East CIO Angelina Lai. Angelina, we heard from Ray Dalio. He says it's a great diversity fire. It is a better haven play than USD. And you agree? I'm not sure that we do actually. So, he's absolutely right. Gold has done extremely well particularly when market goes down. It has also been a very interesting inflation hedge. We've done a lot of tail analysis i.e. when market go down, how do gold sort of fare in comparison particularly also with equity market. And what we actually have found is probably around 70% to 80% of the time it does do okay or do quite well. But it doesn't always give that diversification and actually correlation between gold and equity market tend to be around 50% to 60% positive. So, it's not the greatest diversifier that people tend to think that it is. Coming back to the precious metals actually quite interestingly. So, this year and actually probably for the last few years gold has been sort of the golden child if you will with year-to-date returns around 52% so far. But did you know that silver is actually up 65% and platinum 85%. So, really what we are really seeing is a flight to safety. We tend to talk about gold as a forward indicator for the fear and greed index actually because there is no cash flow attached to gold. And for an organisation such as us that believes in valuation and fundamentals as the basis, it's extremely difficult to value something like a gold which does not have cash flows attached to it. So, fundamentally what you are really looking for is what is the next investor when you are ready to part with your gold willing to pay for that gold. And therefore, it is an interesting diversifier as potentially a small percentage of your portfolio. But what we are really looking at is in general within the market space with all of the assets what is actually the best opportunity at the moment. Where to for gold? Because when you take a look at key indicators, they suggest there is a lot more momentum. What assumptions are you making about gold prices and how much gold should you have in your portfolio, some say a maximum of 10%? Well, so that's an interesting one because Ray Dalio's one, actually he had written some thesis paper actually based in 1970s and 1980s. And when he looked at how gold fared with market, we've since had significantly more market data. And to some of the analysis that we have done, we do tend to find that a small percentage could be interesting during tail risks. But actually what we are really seeing at the moment is that, especially from a valuation perspective, which I did explain is our process, it doesn't really add that much opportunity. So, rather from a mathematical perspective, because gold value is so high at the moment, we actually see the future potential of gold rising at the level that it has done much, much less likely.

France’s outgoing Prime Minister Sébastien Lecornu expressed hope of passing a budget by the end of 2025, while the likelihood of dissolving parliament seems to be fading. Lecornu, who resigned after his cabinet faced widespread rejection, plans talks with Socialist, Green, and Communist parties to explore a coalition government.

Paris

Outgoing PM Lecornu sees consensus for budget by year-end

Israel is pressing forward with its attacks across the Gaza Strip. 
Its forces have targeted displaced families in Khan Younis, killing a mother and her children. Several Palestinians have also been killed in a strike on Al Shati refugee camp, in Gaza City.

Jerusalem

Middle East Conflict

Israeli strikes intensify in Gaza as ceasefire talks enter third day

Palestinian solidarity demonstrators have marched through Mexico and Chile’s capitals, demanding their governments sever diplomatic ties with Israel. The protests mark the second anniversary of Israel's war on Gaza.

Mexico City

Palestinian solidarity protests sweep Latin America

National Guard troops are preparing to be deployed to Chicago. Members of the Texas National Guard arrived just outside the city on Tuesday. The move is being criticized as an abuse of presidential authority.

Chicago

National Guard troops preparing to deploy in Chicago

U.S. President Donald Trump welcomed Canadian Prime Minister Mark Carney to the White House, where he promised to treat Canada fairly in trade talks, but was less committed to a continental trade deal that also includes Mexico.

Washington

Global Tariffs

Trump promises trade fairness for Canada during Carney's visit

From Tel Aviv to the Nova Music Festival site, Israelis gathered to remember those who were killed in the October 2023 Hamas attack.

Tel Aviv-Yafo

Israelis remember victims two years after Hamas attack

Saudi Arabia's Riyadh Comedy Festival is attracting global stars including Dave Chappelle, Pete Davidson and Kevin Hart, with reports that some are being paid more than $1 million each. The event is part of Crown Prince Mohammed bin Salman's push to rebrand the conservative kingdom through sports and entertainment.

Riyadh

Riyadh Comedy Festival draws top U.S. comedians amid controversy

Three U.S.-based scientists have won the Nobel Prize in physics for their work on quantum mechanics. The physics award is the second 2025 Nobel Prize to be announced this week.

Stockholm

Three U.S.-based scientists win Nobel Prize in physics

As the war in Gaza reaches its two-year mark, Israel and Hamas continue negotiations in Egypt. Talks are centered on a proposed ceasefire deal, which includes a partial Israeli withdrawal from Gaza and a hostage-prisoner exchange.

Cairo

Israel and Hamas resume Gaza ceasefire talks in Egypt

Israel has deported activist Greta Thunberg along with 170 others who were detained after Israeli forces intercepted a flotilla attempting to deliver aid to Gaza last week. Some of those deported in recent days have reported mistreatment, allegations that Israel has denied.

Israel deports Greta Thunberg after Gaza Flotilla interception

Leaders in the U.S. state of Illinois are taking President Donald Trump to court, looking to stop the deployment of hundreds of National Guard troops to the streets of Chicago. The White House argues that soldiers are needed to prevent so-called lawlessness.

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French President Emmanuel Macron has given Prime Minister Sebastien Lecornu 48 hours to stabilize the government following his sudden resignation. Lecornu stepped down hours after naming his cabinet, amid criticism and growing political instability in a parliament without a clear majority.

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Microchip maker AMD got a huge boost in the race to supply the artificial intelligence revolution. OpenAI, the company behind major AI platform ChatGPT, announced a deal for AMD to provide the AI startup with its high-performance processing chips starting next year.

Santa Clara

Rise of AI

AI chipmaker AMD strikes major deal with OpenAI

It's a race against time to save the remaining 200 or so stranded climbers on Mount Everest after a massive storm dumped at least three feet of snow over the weekend.

Gorakshep

About 200 Mount Everest climbers still stranded

Clashes broke out at ICE facilities in Chicago and Portland after President Trump ordered National Guard troops into both cities. The move has intensified tensions between federal authorities and local officials amid ongoing protests.

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Former NFL quarterback and Fox Sports analyst Mark Sanchez was charged with felony battery involving serious bodily injury, and could face up to six years in jail, according to Marion County Prosecutor Ryan Mears.

Indianapolis

Mark Sanchez charged with felony, could face up to 6 years in jail

Illinois Gov. JB Pritzker and Chicago Mayor Brandon Johnson announced on Monday a lawsuit against the Trump administration over plans to deploy the National Guard to Chicago.

Illinois, Chicago sue Trump over National Guard deployment

A selloff in French markets gathered pace after French media reports that Prime Minister Sebastien Lecornu has resigned. French stocks fell sharply, government bond yields were up 8 basis points and the euro was last down 0.65% at $1.1667.

French markets tumble after PM Lecornu resigns

Former NFL quarterback Mark Sanchez has been charged with battery, intoxication, and unlawful entry after allegedly attacking a 69-year-old truck driver in Indianapolis. The driver stabbed Sanchez in self-defense, believing his life was in danger. Sanchez is currently hospitalised.

Ex-NFL star Mark Sanchez faces criminal charges in alleged assault

U.S. President Donald Trump's battle with Democratic-led cities is heating up after 200 California National Guard troops have been reassigned to Oregon, despite a judge blocking the deployment to Portland.

Portland

Trump sends National Guard to Oregon despite court block

Israeli planes and tanks pounded areas across the Gaza Strip overnight and on Sunday, destroying several residential buildings, witnesses said, as Palestinians hoped a U.S. plan to end the war would soon ease their suffering.

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Amenhotep III ruled between 1390 and 1350 BC and was one of the most prominent pharaohs of ancient Egypt.

Pharaoh's tomb reopened after more than 20 years of renovations

President Trump has thrust the U.S. military into a critical role deterring illegal crossings into this country at the southern border. As Charlie D'Agata reports, their presence is having unintended consequences.

Santa Teresa

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A new CBS News poll shows a majority of Americans disapprove of how President Trump and congressional Republicans and Democrats have handled the government shutdown. Willie James Inman reports on that and Mr. Trump's latest National Guard moves.

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Negotiators between Hamas and Israel will begin meetings in Cairo on Monday (October 6) for the release of the remaining 20 hostages and a prisoner swap.  There is a lot of pressure on both sides to get a deal done.

Negotiations between Israel, Hamas set to begin

Japan's ruling party picked hardline conservative Sanae Takaichi as its head on Saturday, putting her on course to become the country's first female prime minister in a move set to jolt investors.

Tokyo

Right-wing Sanae Takaichi set to be Japan's first female premier

For a second day, Israel is launching more strikes on the Strip defying demands from the U.S. to stop attacks. At least 61 Palestinians were killed in attacks across the Strip.

Israel intensifies Gaza bombardment despite U.S. pressure to stop

Israeli Prime Minister Benjamin Netanyahu says he hopes to announce the release of all the hostages being held by Hamas in Gaza in one fell swoop in the coming days.

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Tensions are high in Portland, Oregon, as National Guardsmen could possibly be deployed there as early as this weekend. Federal agents and demonstrators squared off again, but Portland's mayor and chief of police say they don't need the help.

Breakdown