Precious metals such as gold and other alternative assets are attracting investor demand during a period of heightened fiscal uncertainty. In Tuesday trading, spot gold prices eclipsed $4,000 per troy ounce for the first time, extending a sharp rally this year that has coincided with gains for silver and platinum as well. Meanwhile, bitcoin registered a new record high on Monday. The moves this week came amid a rise in French bond yields following the resignation of France’s prime minister, a weaker yen after Japan’s governing party elected a new leader, and a U.S. government shutdown that has cut off the normal flow of economic data.

Demand for alternatives may also reflect lingering fears over stubborn inflation, developed markets’ strained balance sheets, and potential knock-on effects hitting the dollar and other currencies. The dollar has regained its footing after a rough first half of the year. The U.S. dollar index, which tracks the greenback against a basket of currencies, touched a 52-week low of 96.22 on Sept. 17—the day of the Federal Reserve’s rate cut—and closed at 98.58 on Tuesday, according to ICE Futures data. Even so, all-time highs for gold and silver this week suggest that investors are seeking a hedge against inflation and fiscal risks while diversifying portfolios amid a bull market for equities.

In a new episode of the Speaking of Alternatives podcast, PGIM experts explore the intersection of private wealth and alternative investments, offering perspectives on the ways investors are broadening portfolios beyond traditional markets.