Saturday, March 29, 2025
Gold prices have skyrocketed to record highs, crossing the $4,000 per ounce mark for the first time in Asian markets on October 8, 2025. The rally is driven by growing expectations of U.S. Federal Reserve rate cuts, a weaker dollar, and heightened global uncertainty.
Investors are flocking to gold as a safe-haven asset amid concerns over a potential U.S. government shutdown, political unrest in Europe, and fears of economic slowdown. Spot gold rose 0.6% to $3,985.82 per ounce, briefly touching an all-time high of $3,990.85. U.S. gold futures for December delivery closed at $4,004.40, climbing as high as $4,014.60 during the session.
In contrast, other metals struggled. Spot silver dropped 1.4% to $47.86 per ounce, while other base metals also traded lower.
On India’s Multi Commodity Exchange (MCX), December gold futures surged ₹806 (0.67%), trading at ₹121,055 per 10 grams by 7:51 am IST. However, silver futures fell ₹2,109 (1.43%), settling at ₹145,410 per kilogram.
Analysts highlight multiple factors behind the gold price rally:
Fed Rate Cut Expectations: Markets are pricing in a 45 basis-point cut this year.
Safe-Haven Demand: Investors are seeking protection amid the U.S. budget crisis and political instability in France.
Weaker Dollar: A falling U.S. dollar index has boosted gold’s global appeal.
Central Bank Buying: Countries including China are accumulating gold reserves.
ETF Inflows: Gold-backed exchange-traded funds have seen a surge in investment.
Gold has already risen 52% in 2025, compared to a 27% jump in 2024. Analysts note that the rally is fueling “FOMO” (fear of missing out), with investors buying at elevated levels to avoid being left behind.
UBS analyst Giovanni Staunovo said: “Even at record prices, investors are continuing to buy, which is accelerating the momentum further.”
Zaner Metals analyst Peter Grant added: “With a government shutdown looming and global uncertainty rising, safe-haven flows into gold remain strong.”
Reflecting the bullish outlook, Goldman Sachs has raised its gold price forecast for December 2026 to $4,900 per ounce, up from its earlier target of $4,300. The bank cited continued ETF inflows and central bank purchases as key drivers for further gains.
