Gold prices broke through their 45-year inflation-adjusted record, hitting new highs above $3,670 per ounce, as economic worries, Trump-era tariffs, and looming Fed rate cuts drive investors toward safe havens.
Gold’s bull run continues to rewrite history. Spot prices climbed as high as $3,687.50 per ounce on Thursday, surpassing the inflation-adjusted peak set in January 1980, when bullion touched $850 per ounce—worth roughly $3,590 today after adjusting for decades of consumer inflation. Analysts agree gold has now firmly cleared that hurdle, marking a symbolic and psychological milestone in financial markets.
Why gold is soaring
Fed policy expectations: Investors are betting the Federal Reserve will cut rates next week in response to a slowing labor market, despite inflation running above the 2% target. Lower interest rates reduce the appeal of interest-bearing assets and weaken the dollar, boosting demand for non-yielding gold.
Tariff and stagflation risks: Trump’s sweeping tariffs have fueled fears of higher costs and supply shocks. Many traders see gold as protection against stagflation — slow growth combined with sticky inflation.
Safe-haven demand: Ongoing geopolitical tensions, from Russia–NATO flare-ups to Middle East instability, continue to funnel global capital into bullion as a hedge against currency and market volatility.
The numbers
Year-to-date surge: Gold has jumped 40% in 2025, smashing more than 30 new nominal records.
September momentum: In just the first 11 days of September, bullion is already up 5%, accelerating its three-year bull market.
Spot close: Prices settled near $3,656.40, still above the previous inflation-adjusted record of $3,498.77.
Historical context
The last time gold hit an inflation-adjusted record was in 1980, during President Jimmy Carter’s final year in office, as the US battled high inflation, rising energy costs, and geopolitical uncertainty. Four and a half decades later, under President Donald Trump, history has repeated itself — with gold again becoming the ultimate hedge against economic turbulence.
Analysts say the rally could extend further if the Fed opts for a deeper cut — 50 basis points instead of 25 — or if global growth continues to wobble under the weight of tariffs and debt burdens. While some warn of volatility near all-time highs, consensus holds that gold’s role as a store of value has rarely looked stronger.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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