RECAP: Gold soars to unseen highs in 202525 Dec 2025 23:40
The price of gold continued to grow exponentially in 2025, reaching multiple new all-time highs and trading at $4,525.78 per ounce on Christmas Eve. The yellow metal surged by 70.74% year-to-date, marking the biggest annual increase since 1979, when the Iranian Revolution and high inflation caused gold prices to skyrocket by more than 120% on a yearly basis.
This year was marked by the return of United States President Donald Trump to office, with his second term introducing higher tariffs and triggering a trade war that pushed gold prices upward as investors sought safe-haven assets amid economic uncertainty. The uncertainty also led the US Federal Reserve to opt for keeping its key interest rates unchanged for the majority of the year, in an effort to offset the perceived risk of higher inflation brought on by the new trade duties. This caused tensions to rise between Trump and Fed's Chair Jerome Powell, with the US president claiming that the central bank's next chair will "never" be somebody who "disagrees" with him.
On the geopolitical front, the ongoing conflict between Russia and Ukraine, as well as Israel's conflict with Hamas and Iran, also drove the demand for lower-risk assets, such as gold. Although Israel eventually reached a ceasefire with Iran and began with ceasefire procedures with Hamas, as well, it did not lead to a significant decrease in demand for the yellow metal.
After crossing major thresholds in the past year, including the $3,000 and $4,000 marks, gold is expected to continue to rise in the upcoming year, with some analysts projecting it will exceed $5,000 per ounce. It remains to be seen if the Fed's recent return to rate cuts or a potential peace in Ukraine will have a significant impact on gold, losing some of its luster.
baha the information company - RECAP: Gold soars to unseen highs in 2025
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