Gold prices appear set to enter uncharted territory in 2025, with the yellow metal crossing the US$4,000 per ounce mark in international markets — a record high that underscores gold’s enduring appeal as a safe-haven asset. Rising by over 50% so far this year, gold’s meteoric rally has been nothing short of historic, fueled by global economic uncertainty, a weakening U.S. dollar, and persistent central bank accumulation.
Gold prices are on the verge of making history in 2025, as the precious metal surges past US$4,000 per ounce in international markets — a record level highlighting its continued strength as a safe-haven asset. Having gained over 50% so far this year, gold’s spectacular rally reflects mounting global economic uncertainty, a weakening U.S. dollar, and sustained buying by central banks worldwide.
Gold’s latest surge has been remarkably swift. Prices soared from $3,000 on April 1, 2025, to $4,000, gaining $1,000 in barely 210 days. This sharp rise contrasts sharply with the metal’s past trajectory — it took nearly 15 years (from 2009 to 2024) for gold to move from $1,000 to $2,000, and another 14 months to touch $3,000 in March 2024.
Market veteran Peter Schiff, Chief Economist and Global Strategist at Europac, had long predicted such an uptrend. Back in 2024, Schiff noted that if gold could replicate its fivefold rise from 2000 to 2011, it could eventually touch $10,000 per ounce — and at a much faster pace, given the U.S. government’s worsening fiscal situation and potential for further quantitative easing (QE).
The current gold bull run, which began in 2022, has been largely driven by central banks diversifying away from the U.S. dollar. Data from the World Gold Council indicates that after a brief pause in mid-2024, central banks resumed purchases in August, adding 15 tonnes to global reserves. For three consecutive years — 2022, 2023, and 2024 — central banks have acquired over 1,000 tonnes of gold annually, highlighting the global pivot towards tangible assets amid growing mistrust in fiat currencies.
Gold’s rally in 2025 has been amplified by mounting geopolitical and economic tensions, including the U.S. government shutdown, which has rattled investor confidence. Analysts estimate that the U.S. economy loses around $7 billion per week of shutdown, with projections of losses reaching up to $15 billion weekly if it extends further.
A series of challenges — including Trump-era tariffs, trade wars, and a 10% decline in the U.S. dollar index this year — have further boosted gold’s allure. Expectations of Federal Reserve rate cuts in the coming months are also reinforcing bullish sentiment, as lower interest rates tend to enhance gold’s attractiveness relative to yield-bearing assets.
However, not all analysts are convinced the rally will sustain without correction. Crypto analyst Michael van de Poppe cautioned that gold’s 47% annual rise is “very unusual” and could lead to a “significant correction” later this year.
The broader narrative behind gold’s ascent reflects a global erosion of confidence in fiat currencies. Central banks now hold 20% of their foreign exchange reserves in gold, surpassing Euro holdings (16%) for the first time. Meanwhile, U.S. Treasury holdings have fallen below gold levels for the first time since 1996 — a powerful indicator of gold’s reasserted dominance as a global store of value.
As investors seek stability amid fiscal strain, geopolitical volatility, and monetary uncertainty, gold is once again proving its title as the “Emperor of Assets.” Whether prices continue to climb toward the ambitious forecasts of $10,000 or face a short-term correction, one thing is certain — gold has reclaimed its throne in the global financial hierarchy.
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