Oct 8 (Reuters) - Gold smashed through $4,000 an ounce to hit a record high on Wednesday, driven by investors seeking safety from mounting economic and geopolitical uncertainty, alongside expectations of further interest rate cuts by the U.S. Federal Reserve.
Spot gold XAU= was up 0.3% at $3,997.09 per ounce by 0202 GMT, after hitting an all-time high of $4,000.96. U.S. gold futures GCv1 for December delivery gained 0.4% to $4,020.00 per ounce.
Traditionally, gold is seen as a store of value during times of instability. Spot gold is up 52% year-to-date after rising 27% in 2024.
A clutch of factors such as higher central bank purchases, renewed interest in gold-backed exchange-traded funds, a softer U.S. dollar and resilient retail demand has fueled the metal's bullish run.
A "fear of missing out" is also boosting the rally, analysts say.
"What we see now is that investors are buying gold, despite the price being high, and this is amplifying the move further," said UBS analyst Giovanni Staunovo.
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