Gold rises to above 4,000 for the first time

Gold, which has led commodity alternative assets as one of the fastest growing in the market, has recently surpassed 4,000 on the market, contributed by strong investor sentiment by its safety.

Gold bars stored in Siberia, Russia, REUTERS/Ilya Naymushin.

On Tuesday, the valuation of gold surpassed 4,010 as commodities overall rallied. As of 12:34 PM EST, the average gold price rose 0.29%, with it making all-time highs. The price of gold has recently shifted upward following the Federal Reserve's pivotal move to cut interest rates by 25 basis points.

This rate cut, while easing investor fears of a weakening economy, particularly a weakening labor market through incentivizing the taking out of loans to promote economic growth, also raised skepticism about the continued allocation of funds into stored U.S. dollars, whose value has now come under risk due to lowering interest rates. In fact, in recent weeks the USD weakened against many major currencies like the Euro and even the heavily inflated Japanese Yen.

The retreat from U.S. Dollars to commodities like gold and silver reflects the dramatic movement toward safeguarding funds in more reliable sources like precious metals as currency inflates and inflation in general begins to tick up. However, this retreat is not limited to just commodities but also cryptocurrencies, resulting in landmark gains for Bitcoin, XRP, and Ethereum.

Now may be the best time than ever to get yourself involved in the gold market. With very negligible downside, it provides substantial growth opportunity to those holding it for long periods of time; and for those looking to make a gain, although gold's ascent may be more gradual than its crypto or fiat currency counterparts, it still "lock in" gains which cannot go understated.