The peak gold price in recent times.
In recent months, the price of gold has been breaking new records, reaching unprecedented heights not seen before. This surge in gold's value can be attributed to a variety of factors, including a weakening US dollar, economic instability, and geopolitical tensions.
Gold is traded in dollars and cents per ounce, with activity taking place worldwide at all hours. This constant global activity results in a live price for the metal, which has been on a steady upward trend. In February 2021, gold set new highs in all currencies, as the US dollar weakened, the Federal Reserve left interest rates unchanged, and the looming threat of Trump's tariffs loomed.
The gold price continued to climb in the following months, with the metal breaching the significant US$2,000 price level in mid-2020. This was due to a softer US dollar, rising geopolitical issues, and a slowdown in economic growth caused by the COVID-19 pandemic.
In July 2024, the gold spot price hit a new all-time high of US$2,469.30 following the failed assassination attempt on President Trump and Fed Chair Powell's statement about coming interest rate cuts. The price of gold surpassed US$2,500 on August 2, 2024, on a less than stellar US jobs report.
Gold broke through US$2,400 in mid-April 2024 on strong central bank buying, sovereign debt concerns in China, and investors expecting the Fed to start cutting interest rates. The price of gold peaked at US$3,500.05 per ounce, its all-time high, during trading on April 22, 2025.
The gold price has set a string of new highs this month alone amid high market volatility as markets react to the latest tariff decisions from President Trump and the escalating trade war between the US and China. The Fed cut interest rates by half a point on September 18, 2024, news that sent gold even higher.
Gold breached the US$2,700 level in October 2024 on a variety of factors, including further rate cuts and economic data anticipation, the escalating conflict in the Middle East, and economic stimulus in China.
Gold bullion is traded on the spot market, meaning that buyers pay a specific price per ounce for the metal and then have it delivered. Investors can also purchase physical gold via the futures market, but the process is complicated and lengthy and comes with a large investment and additional costs.
Gold's ability to decouple from the stock market during periods of stress makes it "unique amongst most hedges in the marketplace." This means that gold can provide a stable investment option during times of economic uncertainty.
Investors should keep a close eye on the gold market as it continues to fluctuate in response to global events. The price of gold is likely to remain high as long as economic instability persists.
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