Could Gold Hit New Records Before The Year’s End?
In 2025, gold has surged over 60% from jan to November. It outperformed all other assets and equities. Gold’s current prices exceed $4,100 per ounce. However, the forecasts suggest they will rise further.
Economic uncertainties and geopolitical issues are the key factors driving investors toward gold. They are looking at gold as a safe investment option. Similarly, global monetary policies are shifting toward greater gold accumulation.
Current Market Trends
After months of outflows, gold’s ETFs are now showing rising investor inflows. It signals a renewed trust in gold among investors. Previously, they quit buying gold due to the rapid rise; however, it seems the People’s Bank of China is shifting investor sentiment, making them more confident in gold investments.
According to Goldman Sachs’ year-end gold price forecast, it is expected to reach $4378. However, his new prediction has risen to $4900 per ounce. That’s a massive rise compared to any other investment option. Despite these high prices, gold retail never stopped.
Especially in Asia, gold remains a lucrative investment option due to its cultural and emotional appeal. It is surpassing major indices such as the NASDAQ and the S&P 500.
Key Drivers Behind The Rally
Central banks of Russia, China, and India are aggressively buying gold to diversify their countries’ reserves. All the banks now account for a major portion of gold demand. Similarly, conflicts in Eastern Europe and the Middle East have increased safe-haven buying by global investors.
Instability of global banking, along with rising debt and rapid technological shifts in the finance sector, are also pushing investors toward gold. Historically, gold has remained a stable asset and is easy to sell even in the worst economic crisis.
Fed rate cut speculation, stemming from the US being shut down, and weak labor market data are other key factors driving market volatility, leading to weakened investor trust. While it reduces the dollar price, gold is also appreciated as a lucrative, stable, and rising asset.
Gold is now acting as a hedge against all types of financial losses for investors. Persistent inflation in major economies and currency devaluation fears in emerging markets are both increasing the attractiveness.
Expert Predictions
Goldman predicted that multi-year demand from central banks will push gold to new record highs. Similarly, according to CoinForcast, the year-end 2025 target will be $4378 while the mid-2026 target will be $5000.
Quiver Financial stated that “Gold forecast 2025 prices are expected to average $3600-3700 per ounce bythe end of 2025, with potential to reach $4000 by 2026. Central banks are projected to purchase 900-1000 tonnes of gold in 2025, supporting strong demand fundamentals.”
According to Goldman Sachs research, “Since March, investors have been increasing their holdings of gold, driven by concerns about the health of the economy and market volatility. Longer term, Goldman Sachs Research expects prices to be propelled by multi-year demand from central banks.”
J.P. Morgan research stated that “Prices are expected to average $3,675/oz by the fourth quarter of 2025 and climb toward $4,000 by mid-2026. Central bank and investor demand for gold is set to remain strong, averaging around 710 tonnes a quarter this year.”
Discovery Alert described “Gold has reached unprecedented territory in 2025, with prices climbing above $4,000 per ounce for the first time in history. This milestone represents more than just a numerical achievement, it signals a fundamental shift in how investors, institutions, and central banks view precious metals in the modern economy.”
According to Barchart.com, “After months of outflows, gold ETFs are finally experiencing inflows again, and the gold price per ounce has returned above $4,100. Luckily, this isn’t due to rising global tensions, but instead hopes that the US shutdown will end soon and that the Fed will adopt a more moderate approach following some disappointing labor market data.”
