Gold pushed through $4 000 an ounce to hit a record on Wednesday, driven by investors seeking safety from mounting economic and geopolitical uncertainty, alongside expectations of further interest rate cuts by the US Federal Reserve.

Spot gold was up 0.5% at $4 002.53 per ounce by 0213 GMT. US gold futures for December delivery gained 0.5% to $4 025 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.

"There's so much faith in this trade right now that the market will look for the next big round number which is 5,000 with the Fed likely to continue to lower rates," said Tai Wong, an independent metals trader.

"There will be some bumps in the road like a lasting truce in the Mideast or Ukraine but the fundamental drivers of the trade, massive and growing debt, reserve diversification, and a weaker dollar are unlikely to change in the medium term."

The metal's rally has been driven by a cocktail of factors, including expectations of interest rate cuts, ongoing political and economic uncertainty, solid central bank buying, inflows into gold exchange-traded funds and a weak dollar.

The U.S. government shutdown entered its seventh day on Tuesday. The shutdown has postponed the release of key economic indicators, forcing investors to rely on secondary, non-government data to gauge the timing and extent of Fed rate cuts.

Investors are now pricing in a 25-basis-point cut at the Fed meeting this month, with an additional 25-bp cut anticipated in December.

Additionally, political turmoil in France and Japan has also boosted demand for the safe-haven bullion.

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.

Spot silver rose 0.5% to $48.03 per ounce, platinum gained 2.2% to $1 653.21 and palladium climbed 1.3% to $1 355.32.