9 Important Reasons Why Gold Prices Are Making Historic Highs

Gold prices have surged to record all-time highs of ₹109,475 per 10g in India. On MCX, it is hovering around ₹109,028 per 10g and globally above $3,645/oz, up 40% year-to-date as of September 10, 2025. This is happening due to a combination of festive demand, expectations of Fed rate cuts, weakening dollar, global slowdown fears, geopolitical tensions, and central bank buying. While some consumer jewellery demand may slow at these elevated levels, investment demand remains strong, reinforcing gold’s safe-haven status. Here are nine critical reasons why gold prices are rising: 1.

Domestic festive and wedding season demand Not only at the international level, but also at the domestic level, according to Aksha Kamboj, Vice President, IBJA and Executive Chairperson, Aspect Global Ventures, there is strong domestic buying interest as the festive... As Navratri and Diwali, along with the wedding season, approach, seasonal demand traditionally boosts jewellery purchases, although record-high prices may deter some price-sensitive households. 2. Expectations of U.S. Federal Reserve rate cuts

Updated on: December 23, 2025 / 7:51 AM EST / CBS News Gold prices soared above $4,400 on Monday to reach a new all-time high, as analysts pointed to rising geopolitical tensions and softer monetary policy as key drivers of the surge. The price of the precious metal traded at $4,475 per ounce at 4 p.m. EDT after hitting a high of $4,477 per ounce earlier in the day. The asset has risen more than 70% since the start of this year. Gold is viewed as a safe-haven investment and typically acts as a hedge against inflation.

"The metals trade has been strong all year, and particularly for gold," Bret Kenwell, a U.S. investment and options analyst at eToro, told CBS News. "As its fundamentals remain intact, gold digested its recent rally to all-time highs quite well." Silver prices were also rallying on Monday, reaching $69 by 4 p.m. EDT. The metal is up 130% since the start of the year.

Investors continue to buy up metals, driving the prices of gold and silver to new highs. Gold hit $4,460 per ounce Monday, an all-time high in a year that's already seen it surpass its 1980 inflation-adjusted peak. Silver has more than doubled in price. Copper, the metal wiring data centers and EVs, is approaching $12,000 per ton in its biggest annual surge since 2009. For investors, the metals rally signals persistent fears over inflation and economic uncertainty, as well as a massive infrastructure buildout that's just getting started. You may already be feeling these price surges, whether through higher jewelry costs, pricier electronics, or rising home renovation bills.

Rate-cut expectations, a weakening dollar, and geopolitical anxiety are fueling these rallies. The dollar is on pace for its steepest annual decline since 2017, making gold cheaper for overseas buyers and spawning enthusiasm for what's known as the "debasement trade," in which investors see metals as... Central banks are also building their gold stockpiles, expanding physical holdings to cut their reliance on the dollar and hedge against economic turbulence. The price of gold has soared nearly 70% this year. The prices of gold and silver hit record highs on Monday, extending a banner year for the precious metals. Gold has risen 10% over the past month and nearly 70% in 2025.

As of midday Monday, the price of gold topped $4,470 per ounce. Silver bested its amber counterpart over that span, jumping almost 40% over the last month and 134% this year. Heightened geopolitical and economic uncertainty have boosted demand for gold and silver, which typically display a degree of independence from movements in stock prices, some analysts told ABC News. Volatility in bond markets and a devaluation of the U.S. dollar, meanwhile, have unsettled alternative assets typically viewed as safe-haven investments. With record highs at $4,000 an ounce, you may be wondering why gold price is increasing.

There’s more to this answer than just increased demand and fixed supply. The reality is there’s a number of factors and stakeholders, including consumers, private investors, and central banks. With persistent inflation and economic uncertainty, people just don’t fully trust paper money or stock markets to hold their value, so they’re buying gold. And every time confidence slips, the price responds. This article covers what’s driving gold higher right now and what it might mean for the rest of the year. Gold doesn’t have a fixed value.

Its price moves because different forces pull in opposite directions. There’s only so much gold available, with only a small amount added each year from mining and recycling. Demand comes from many places, like central banks adding to reserves, investors looking for safety, and buyers in countries like India and China, where gold is part of daily life. Ever since August 15, 1971, when President Richard Nixon ended the dollar’s convertibility into gold, the two have gone their separate ways. Gold no longer follows the dollar, and that independence is part of what makes it valuable. Lecturer in Economics, University of Sydney

Luke Hartigan receives funding from the Australian Research Council (DP230100959). University of Sydney provides funding as a member of The Conversation AU. The price of gold surged above US$4,100 (A$6,300) an ounce on Wednesday for the first time, taking this year’s extraordinary rally to more than 50%. The speed of the upswing has been much faster than analysts had predicted and brings the total gains to nearly 100% since the current run started in early 2024. Gold is increasingly in focus among traders, investors — and central banks. The precious metal, which has been used as a financial asset for millennia, is prone to dizzying rallies and deep slumps.

But despite the commodity’s volatility, gold has repeatedly set records in recent years. Since March, investors have been increasing their holdings of gold, driven by concerns about the health of the economy and market volatility. Longer term, Goldman Sachs Research expects prices to be propelled by multi-year demand from central banks. Our analysts’ gold price prediction is for these two factors to push the metal to new record highs. Goldman Sachs Research’s gold price prediction 2025 Even so, Thomas says gold is likely to break more records this year.

Goldman Sachs Research predicts gold will rise to $3,700 a troy ounce by the end of 2025 (from $3,220 on May 15) as central banks buy many tonnes of the precious metal every month.

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