Gold reaches record high of $3,800 per ounce

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Rising economic uncertainty and strong central bank demand propel gold to new heights in 2025.

Gold reached a record high of $3,800 per ounce today, marking another milestone for the precious metal amid continued economic uncertainties and investor demand for safe-haven assets.

The surge extends gold’s remarkable rally in 2025, with the metal posting multiple record highs throughout the year after surpassing $3,000 per ounce earlier. The precious metal has gained more than 40% year-to-date.

Recent price increases have been fueled by U.S. Federal Reserve interest rate cuts and a weakening dollar, driving investors toward traditional safe assets during periods of global instability.

Central banks have been accumulating gold reserves at record levels, with China among the nations building positions as part of a broader de-dollarization trend where countries diversify away from U.S. currency holdings.

Global gold demand reached over 4,000 tonnes annually in recent years, with physical demand for bars and coins surging among retail investors. Mining production has remained relatively stable at around 3,000 tonnes per year, creating supply pressures.

Gold historically surges during economic instability, rising from around $800 to over $1,900 per ounce between the 2008 financial crisis and 2011 as investors sought protection against market volatility and inflation.