(MENAFN) Gold has climbed steadily for four straight months, driven by geopolitical transformations, growing confidence in Federal Reserve rate reductions, and persistent gold acquisitions by central banks.

Beginning the year at $2,623 per ounce, the metal maintained a largely upward trajectory through 2025.

Robust central bank demand, expectations of additional Fed easing, and global political dynamics all contributed to strengthening prices.

During the first months of the year, gold advanced 6.67% in January, 2.17% in February, 9.26% in March, and 5.26% in April.

After moving sideways throughout May, June, and July, the commodity posted further monthly increases of 4.8% in August, 11.9% in September, 3.7% in October, and 5.4% in November.

The asset reached an all-time peak of $4,381.6 per ounce in 2025, yielding returns of up to 60% for investors since January.

Zafer Ergezen, an expert in futures and commodity markets, told a news agency that gold had entered a brief stabilization phase before resuming its upward pace.

“The main reason for gold’s rise is the increased probability of Fed rate cuts,” he said. “While the Fed chair’s inclination towards rate cuts pulled back the US Dollar Index, it caused an upturn in precious metals.”

Ergezen noted that a close above $4,000 suggests gold may attempt to revisit its record peak, though the current momentum could decelerate to some extent.

He also remarked that additional highs may emerge if gold positions that were closed in October are reopened.

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