Global gold prices surged to an all-time high when they broke through the $4,000 per ounce level.
This was driven by increased demand for safe assets due to global economic uncertainty and expectations of monetary policy easing in the United States (US).
The more than 50% jump in gold prices since the beginning of the year has made the yellow metal one of the strongest assets compared to other stocks and commodities throughout 2025.
The price surge was supported by geopolitical concerns, including prolonged conflicts in the Middle East, political uncertainty in several major economies, and increased risk of government debt that prompted investors to turn to hedge funds.
In addition, expectations that the Federal Reserve (Fed) will cut interest rates in the near future have also added to the appeal of gold, which does not offer interest returns but is considered stable in volatile market conditions.
Banks around the world have also increased their purchases of gold, while institutional fund inflows into gold-based exchange-traded funds (ETFs) have also supported the price rise.
However, analysts warn that this sharp rise could be followed by a price correction as investors start taking profits.
Nevertheless, gold remains a key asset for hedging against inflation and currency weakness, and a top choice during times of market uncertainty.
