Gold prices hit $4,000 per ounce Tuesday for the very first time, driven by strong investment demand amid broader geopolitical and economic uncertainty, along with expectations of further interest rate cuts from the Federal Reserve.

Gold has climbed 51% so far this year on sizable central bank buying, increased demand for gold-backed exchange-traded funds, a weaker dollar and growing interest from retail investors seeking to hedge amid rising trade and geopolitical tensions. During the first quarter of the year, gold posted its strongest quarterly return since 1986.

Gold thrives in a low interest rate environment and during economic uncertainty. It is considered a resilient investment and a hedge against inflation, with investors betting it will retain its value when prices rise. The government shutdown has left traders and policymakers without any federal data, including the crucial monthly jobs report. Key inflation figures for the month of September are due next week. That has forced investors to rely on secondary, non-government data to gauge the timing and extent of Fed rate cuts.