Gold Price Rally 2025: The Yellow Metal Gained Most Since 1979

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As the gold price rally in 2025 crosses 50 record highs, Fed rate-cut bets, geopolitics and central-bank buying fuel a historic surge

By S JHA

Mumbai, December 25, 2025 — Gold’s extraordinary performance in 2025 has stunned even seasoned market watchers. With prices hitting record highs more than 50 times and rising nearly 70% in a single year, the gold price rally in 2025 marks the metal’s strongest run since 1979. This is no speculative blip — it is the outcome of powerful forces converging at once.

At the heart of the rally lies a shifting US monetary outlook. “While the American economy has shown resilience, with solid GDP growth in the third quarter, the labour market is cooling. Job creation is slowing, and markets are now pricing in two US Federal Reserve rate cuts in 2026,” market analyst Gurleen Kaur wrote in an X thread.

She stated that “when interest rates are expected to fall, gold tends to shine. Lower yields diminish the appeal of cash and bonds, pushing investors toward assets that preserve value — and gold has historically served that role better than most.”

Geopolitical risk has added fresh fuel. “From intensifying conflicts to disruptions in energy trade — including recent US actions around Venezuelan oil shipments — uncertainty has crept back into global markets,” added Kaur.

In such environments, the analyst argued, gold’s reputation as a safe-haven asset becomes self-fulfilling.

“Another critical pillar of this rally is institutional demand. Central banks across the world continue to buy gold to diversify reserves and reduce dependence on traditional currencies, particularly the US dollar,” argued Kaur. She added that “gold-backed funds are also witnessing steady inflows, reinforcing demand beyond retail speculation.”

“What makes this surge exceptional is its feedback loop. Rising prices attract new buyers, which in turn push prices higher — a momentum dynamic rarely sustained for this long,” Kaur noted. As gold increasingly features in trade settlements and reserve strategies, structural demand could remain elevated, she added.

“The question now is not just why gold is rising, but whether this momentum marks a longer-term reordering of global finance,” she stated.