Gold has stormed to fresh record highs, breaking through $3,575 an ounce, as global investors accelerate their flight to safety amid mounting geopolitical and economic turmoil.
The precious metal is trading at its strongest levels in history, lifted by expectations of imminent US interest rate cuts, a weakening dollar, and unprecedented central bank demand.
Nigel Green, CEO of global financial advisory giant deVere Group, says: “Gold’s surge into record territory underscores the scale of unease among investors.
“Currently, we predict the price will reach $5,000 per ounce by the end of the first quarter of 2026. The drivers are already in place and momentum is compounding.”
The Federal Reserve is widely expected to announce a rate cut this month as the US labor market softens and recession risks mount.
Lower rates reduce the appeal of cash deposits and government bonds, while simultaneously supporting bullion.
“Each cut removes oxygen from cash and bonds, leaving gold as the standout alternative,” notes the deVere CEO.
“With inflation still running above target and government debt expanding at record speed, investors are seeking a store of value that requires no political guarantees.”
The dollar index has slipped to its weakest level in over a month, magnifying gold’s appeal to overseas buyers. At the same time, silver has broken through $40 an ounce for the first time since 2011, reinforcing precious metals’ broad safe-haven bid.
Central banks are intensifying their accumulation. The People’s Bank of China has expanded its bullion holdings for 22 consecutive months, while countries in the Middle East and Asia are adding reserves at the fastest pace in decades.
“We expect this accumulation to continue as sovereigns look to reduce reliance on the dollar,” Nigel Green explains.
On the supply side, constraints remain entrenched. Global mine output has stagnated, discoveries are increasingly scarce, and environmental costs are rising.
“When overwhelming demand collides with flat supply, there is only one logical direction for price,” adds the chief executive.
“This imbalance will not resolve quickly, which is why we expect gold’s trajectory to remain sharply upward.”
Private investors are also reshaping allocations. Exchange-traded funds (ETFs) are recording robust inflows, sovereign mints are reporting elevated bullion sales, and institutions are embedding gold into core holdings rather than treating it purely as insurance.
In addition, the US non-farm payrolls report on Friday is expected to show further deterioration in hiring, strengthening the case for monetary easing. At the same time, trade frictions and fiscal uncertainty under President Trump continue to unsettle markets.
“Gold thrives in environments where governments appear unpredictable,” Nigel Green notes.
“Attacks on the independence of the Federal Reserve, erratic trade policy, and spiralling deficits are all elements that erode confidence in fiat currencies. Investors respond by turning to assets that are politically neutral and globally recognized.”
Nigel Green concludes: “Gold is reflecting today’s reality of high debt, unstable currencies, and structural inflation.”
