Gold prices have smashed through the $4,000 per ounce mark for the first time ever, as investors flock to the precious metal amid mounting global uncertainty and growing expectations of Federal Reserve rate cuts.
The rally highlights renewed confidence in gold as a safe-haven asset, supported by strong central bank buying, robust ETF inflows, and a weakening U.S. dollar. So far in 2025, gold has surged an impressive 51%, marking its best performance in nearly four decades.
Why Gold Prices Are Rising
Gold thrives in periods of economic instability and low interest rates. As inflation fears persist and major economies slow, investors are once again turning to gold to protect their wealth.
The U.S. government shutdown has only intensified market uncertainty by halting key data releases such as the monthly jobs report. Without this information, investors are relying on private data to predict the Fed’s next moves. Markets currently anticipate a 0.25% rate cut at the October 28–29 meeting and another by December.
Experts Predict Further Gains
According to Michael Langford, Chief Investment Officer at Scorpion Minerals, “Gold could reach $4,300 per ounce in the next six months as the U.S. dollar continues to depreciate.”
Ken Griffin, billionaire investor and founder of Citadel, voiced concern about the shift toward gold over the dollar. “We’re seeing massive asset reallocation away from the dollar as investors look to de-risk and diversify,” Griffin told Bloomberg.
Adding momentum to the rally, Goldman Sachs has revised its December 2026 gold forecast upward to $4,900 per ounce, citing continued global demand and policy easing expectations.
China’s Central Bank Extends Its Gold Buying Streak
Global central banks remain major players in the gold market. The People’s Bank of China increased its reserves for the 11th straight month in September, reflecting growing confidence in gold as a long-term store of value.
The Bottom Line
With inflation pressures, geopolitical risks, and expectations of Fed rate cuts, gold’s position as a resilient investment has never been stronger. Analysts suggest that if these trends persist, gold prices could test new highs beyond $4,300 in the coming months.
