Gold Surges to Record Highs as Investors Seek Safe Haven
Gold prices have surged to record highs, climbing above $3,800 per ounce. This marks a significant increase of over 45% since the start of the year, the largest annual gain since 1979. Meanwhile, silver has also risen sharply, approaching the $50 mark, up by about 62% since January.
The rally in gold prices can be attributed to several factors. Investors, spooked by the stalemate in Washington and US President Donald Trump's trade wars, have sought refuge in the precious metal. Additionally, the US Federal Reserve's interest rate cuts and central banks' increased purchases of gold have further bolstered prices. Central banks have been net buyers of gold since 2022, purchasing around 400 to 500 tons annually.
Gold mining company stocks have also benefited from this trend, raising a record $6.7 billion in the third quarter of 2025. The amount of gold held by exchange-traded funds (ETFs) has also increased significantly, from just over 81 million to over 96 million fine ounces since summer 2024.
Despite its recent surge, some experts still view gold as expensive at current prices. They cite US monetary policy and fiscal responsibility as potential influencers on the gold price. Meanwhile, platinum, which has never played a real monetary role, is also rising. The operational and management risks faced by gold mining companies, exemplified by the abrupt resignation of Mark Bristow as CEO of Barrick Mining, should also be considered.
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