Price of Gold Just Hit a Milestone

Gold reached a milestone on Tuesday, climbing above $4,000 an ounce for the first time as investors seek a safe haven for their money, reports CNBC. The rally comes amid a confluence of political and economic uncertainties reminiscent of gold's last historic leap in 1979—when inflation, a weakening dollar, and global turmoil sent prices soaring, reports the New York Times. This time, investors are piling into gold as an alternative to traditional safe havens like US government bonds and the dollar, both of which have lost some shine.

The Federal Reserve's ongoing interest rate cuts have helped drive the dollar down about 10% this year, while ballooning government deficits and a Moody's downgrade have further eroded confidence in America's creditworthiness. The turbulence isn't limited to US shores: Japan's yen took a hit after political upheaval, and instability in France has undermined the euro. Gold is up 50% so far this year, and Goldman Sachs predicts it could hit $4,900 per ounce by the end of next year.