Gold Explodes in 2025: Best Since 1979
Gold prices surged past $4,360 per ounce on the final day of 2025, closing the year with a remarkable rally and poised for its best speculative performance in more than 40 years.
Throughout 2025, gold is said to have surged around 66%, with the rally accelerating since late April after President Donald Trump unveiled a global tariff package that fueled market concerns about trade and economic growth.
Gold's rally was also driven by a combination of major factors: persistent geopolitical tensions, US interest rate cuts, and aggressive central bank buying. At the same time, inflows into gold-backed ETFs have also increased—a sign of growing investor appetite for safe-haven assets.
On the monetary policy front, the minutes of the Fed's December meeting, released Tuesday, showed that a majority of Fed officials believed further interest rate cuts were appropriate if inflation continued to decline. However, they remained divided on the timing and magnitude of the next rate cut.
Meanwhile, "safe haven" sentiment continues to be fueled by various global uncertainties: the unclear Russia-Ukraine peace process, renewed tensions in the Middle East, and escalating US-Venezuela friction. These conditions typically make investors more comfortable "parking" in gold.
With the combination of lower interest rates and still-hot geopolitical risks, the market sees gold potentially remaining strong into early 2026—although volatility remains possible if the Fed's policy direction or geopolitical tensions change rapidly.
Key points:
- Gold hits $4,360/ounce by the end of 2025.
- Annual gains are said to be around +66%, the best since 1979.
- The rally has strengthened since late April following Trump's global tariff policy.
- Key drivers: geopolitics, US interest rate cuts, central bank purchases, and gold ETFs.
- Fed minutes: the majority still favor a rate cut if inflation falls, but the timing is still debated.
- Uncertainty between Russia and Ukraine, the Middle East, and the US and Venezuela is strengthening the interest in safe havens. (asd)
Source: Newsmaker.id
