Gold tops record 4,000 as central banks buy and dollar weakens

Gold climbed past 4,000 per troy ounce this week, reaching fresh record highs as investors pushed into the precious metal amid concern over government debt, a weaker dollar and sustained central bank purchases. The rally, which has lifted gold more than 50 percent year to date, gathered momentum in early October after the U.S. government shutdown added uncertainty to markets and prompted increased flows into physical gold and exchange traded funds.

Traders and analysts point to several overlapping drivers. Central banks, notably in Asia and parts of Europe, have been large net buyers of gold as they diversify reserves away from dollar-denominated assets. That steady official demand has provided a structural floor to prices even as equities and bond markets show signs of stability. At the same time, the dollar has weakened, and expectations that the Federal Reserve may ease policy later this year have reduced real yields, both of which tend to support higher gold prices.

Political and geopolitical tensions have also amplified safe-haven demand. The extended U.S. government shutdown has sidelined many federal economic releases, complicating decision making for policymakers and...