Why Gold Prices Keep Hitting Record Highs in 2025

Why Gold Prices Keep Hitting Record Highs in 2025

Gold is soaring to record highs in 2025, on track for its strongest annual performance since 1979, when the metal rose 126% amid the Iran revolution and oil shocks. The spot price of gold touched $3,848/oz, reflecting a 45% increase since January.


What’s Driving Gold’s Rally

  • US political uncertainty: Fears of a government shutdown and policy battles over the Federal Reserve.

  • Trade tensions: Escalating tariffs and economic friction are driving safe-haven demand.

  • Dollar volatility: Attacks on the Fed and expansive fiscal policies raise doubts about the US dollar’s stability.

  • Geopolitical moves: China and Russia are stockpiling bullion and trading mostly in local currencies.

Economists liken the current rally to the 1970s gold bull run, when inflation, oil shocks, and the end of Bretton Woods drove gold skyward. Today, gold acts as a barometer of trust in money and global financial systems.


 Big Picture

Gold is more than a commodity. Its scarcity, durability, and limited supply make it a safe-haven asset during economic and political uncertainty. While the US dollar remains dominant, gold’s rise highlights investors’ unease over the dollar’s future. The question now is whether gold will remain a hedge or become a pillar in a new monetary system.

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