Gold Prices Soar Over 40 Percent This Year

2025-09-25 08:08:44

(MENAFN) Gold prices have soared more than 40% this year, positioning the precious metal for its largest annual increase since 1979. This surge is driven by escalating geopolitical tensions, global economic uncertainties, robust central bank gold acquisitions, and expectations of the Federal Reserve’s rate cut cycle.

Beginning the year at $2,623 per ounce, gold has experienced persistent buying momentum throughout 2025. Monthly gains included 6.67% in January, 2.17% in February, 9.26% in March, 5.26% in April, 0.03% in May, and 0.41% in June. Despite a slight 0.39% dip in July, gold rebounded sharply with a 4.8% rise in August, followed by an 8.54% climb in September.

Gold hit a record peak of $3,791 per ounce this month, marking an approximate 43% rise since January. For context, gold prices surged 126.5% during 1979.

Hamad Hussain, a climate and commodities economist at Capital Economics, told media: “The upward trend in gold prices seems likely to continue as several tailwinds like central bank purchases and strong investor demand in China remain key drivers of the rally. As a result, gold prices will probably reach $4,000 per ounce over the next year.”

He further attributed the record highs to “rising estimates for rate cuts in the US, concerns over the Fed’s independence, and concerns about debt sustainability.”

The combination of these factors underscores gold’s role as a critical safe haven amid ongoing market volatility.

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