Saad Ullah
Gold futures closed at $3,821 per ounce, marking the 38th all-time high of 2025. The chart reveals a persistent uptrend with higher highs and higher lows, signaling robust bullish momentum. This exceptional run has already delivered a 43% gain year-to-date, putting gold on pace for its strongest annual performance in nearly half a century.
Gold's Surge Tied to Fed Policy and Inflation
According to trader The Kobeissi Letter, the rally is deeply connected to monetary policy changes. With inflation holding stubbornly above 3%, the Federal Reserve has been compelled to cut interest rates.
Lower real yields have made bonds less attractive, pushing investors toward gold as a hedge against inflation and currency erosion. Beyond inflation, global economic uncertainty and geopolitical tensions are driving safe-haven demand. Gold has historically thrived during periods of policy instability and rising consumer prices, and 2025 is following that playbook.
Echoes of 1979
The current momentum invites comparisons to 1979, when gold staged one of its most explosive rallies ever. Back then, as today, inflation and shifting central bank policies fueled investor appetite. If the trend holds, analysts believe gold could see even sharper breakouts before the year ends.
What's Next for Investors
While some profit-taking is expected after such a steep climb, the fundamentals still support higher prices. As long as inflation lingers and central banks maintain easing policies, gold's path looks upward. Traders are now eyeing the next milestone above $3,900, which could open the door to the symbolic $4,000 level.
Saad Ullah
