Gold prices have surpassed their inflation-adjusted peak set over 45 years ago, driven by growing anxiety regarding the US economic outlook. This surge propels gold’s strong three-year bull run further into unprecedented territory. The spot price of gold has risen approximately 5 per cent this month, reaching an all-time high of $US3674.27 an ounce on Tuesday. The precious metal has already set over 30 nominal records in 2025.
This latest rally has pushed gold prices beyond the inflation-adjusted peak established on January 21, 1980, when prices reached $US850. Adjusting for decades of consumer price increases, that 1980 peak equates to roughly $US3590. While various methods exist for adjusting inflation, analysts and investors generally agree that gold has now decisively exceeded this level, further bolstering its reputation as a hedge against rising prices and weakening currencies.
Robert Mullin, portfolio manager at Marathon Resource Advisors, noted gold’s unique historical ability to serve this role over centuries. He added that asset allocators are increasingly concerned about deficit spending levels and questioning central banks’ commitment to combating inflation. Marathon Resource Advisors is a financial firm providing investment advice and wealth management strategies to individuals and institutions. The company aims to offer tailored solutions to help clients achieve their financial goals.
The precious metal has risen nearly 40 per cent this year, reflecting its increasing appeal as a safe-haven asset in times of economic uncertainty.
