On December 22, 2025, gold prices surpassed $4,000 per ounce for the first time ever, setting a new historic record. Since the start of the year, gold has risen by 67%, achieving its best result in over 40 years. For comparison, the S&P 500 index rose by just 23% in the same period. Experts attribute the rise not only to speculative demand but also to deep changes in the global financial system.
A key driver of growth is the US Federal Reserve policy. In December, the Fed lowered interest rates for the third consecutive time, making alternative assets less profitable and increasing gold's appeal. At the same time, a weaker dollar has made gold cheaper for foreign buyers, further spurring demand.
Against the backdrop of prolonged global conflicts — the war in Ukraine, the unstable Middle East, and rising US-China tensions — investors are turning to assets independent of government policy. Gold cannot be printed or frozen, which is why central banks purchased over 1,000 tons in a year. Poland, China, and India were among the most active reserve accumulators.
The freeze of Russian reserves in 2022 prompted many central banks to repatriate gold from London and New York. This trend influenced forecasts by major investment banks: Goldman Sachs raised its gold price target to $4,900, while others expect up to $5,000 per ounce.
Other precious metals have also surged: silver rose by 138% since the beginning of the year, while platinum hit its 17-year high. During structural market shifts, analysts recommend increasing gold’s share in investment portfolios to 15-20%.
However, experts remind that gold remains a volatile asset and can experience sharp corrections. Investors should assess their risk tolerance and capital preservation strategy.
The situation in precious metals markets prompts a reconsideration of classic investment approaches and underlines the need for diversification during times of financial uncertainty.
