- Gold prices jump to $3,354.45/oz, extending 2025’s record-breaking rally.
- Macroeconomic uncertainty, geopolitical risks, and central bank buying fuel the surge.
- Analysts see further upside, with J.P. Morgan forecasting $4,000/oz by mid-2026.
Gold’s Relentless Rally Continues
Spot gold climbed nearly 2% to $3,354.45 per ounce on Thursday, marking another milestone in what has been a historic year for the precious metal. The latest surge reflects deepening investor anxiety over global economic stability, compounded by unresolved geopolitical tensions and a weakening US dollar.
This isn’t an isolated move—gold has already rallied over 26% in the first half of 2025, consistently setting new all-time highs. The current price aligns with July’s trading range, which analysts attribute to sustained demand from both institutional investors and central banks, particularly in emerging markets.
Drivers of the Rally
“Gold’s performance isn’t just about fear; it’s about structural shifts in the global economy,” said one commodities strategist, who asked not to be named while discussing market-sensitive views. Persistent inflation in major economies, coupled with stagnant growth and escalating trade disputes, has reinforced gold’s role as a hedge.
Central banks, especially those in China and Russia, have been aggressive buyers, diversifying reserves away from traditional currencies. Meanwhile, retail investors are piling into gold-backed ETFs at levels not seen since the 2020 market turmoil.
What’s Next?
J.P. Morgan recently raised its year-end target to $3,675/oz, with a mid-2026 projection of $4,000. Other banks echo this optimism, though some caution that volatility could spike if geopolitical tensions ease unexpectedly.
For now, the trend remains firmly bullish. As one trader put it: “Until we see a meaningful shift in monetary policy or a de-escalation in global risks, gold isn’t done running.”