(MENAFN) Gold has continued its upward trajectory for a fourth consecutive month, driven by geopolitical developments, expectations of Federal Reserve rate cuts, and sustained central bank purchases.

Starting 2025 at $2,623 per ounce, gold has mostly trended upward throughout the year.

Central bank demand, optimism over potential Fed rate cuts, and global political uncertainty have all supported the rally.

The metal posted monthly gains of 6.67% in January, 2.17% in February, 9.26% in March, and 5.26% in April. Prices plateaued through May, June, and July before rising again by 4.8% in August, 11.9% in September, 3.7% in October, and 5.4% in November.

Gold reached a record high of $4,381.6 per ounce this year, delivering investors returns of up to 60% since January.

Zafer Ergezen, a futures and commodity markets expert, told a news agency that the recent flat periods represent a “resting phase” before further upward movement.

“The main reason for gold’s rise is the increased probability of Fed rate cuts,” Ergezen said.

“While the Fed chair’s inclination toward rate cuts pulled back the US Dollar Index, it caused an upturn in precious metals.”

Ergezen added that sustaining prices above $4,000 could see gold retest its record highs, though the pace of growth may moderate. He noted that if previously closed gold positions from October are reopened, new records may still be within reach.

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