Explainer: Why gold prices are hitting record highs
Gold prices have smashed records in 2025, jumping over 54% from last year to cross $4,000 per ounce—a level not seen since 1979.
This surge is mostly thanks to stubborn inflation, economic uncertainty, a weaker US dollar, and global tensions.
With US inflation running higher than the Fed's 2% target, and worries about rising tariffs and recent government shutdowns, investors are flocking to gold as a safe bet.
Gold could hit $4,900 per ounce by end of 2025
Central banks worldwide have been stacking up gold, especially after sanctions on Russia shook up the global economy. That's helped drive demand—and prices—higher.
Plus, a weaker US dollar means gold is cheaper for international buyers.
Experts even think gold could hit $4,900 per ounce by the end of 2025 if central banks keep buying and the Fed cuts interest rates.
Gold's safe-haven status is definitely having a moment.