On October 16, 2025, the price of gold reached a new historic high of $4380 per ounce. According to TradingView, this record value pushed the market capitalization of gold above $30.38 trillion, highlighting gold’s status as a leading safe-haven asset for investors worldwide.
This is reported by Finway
Factors Driving Gold Prices
Since the beginning of 2025, the price of gold has increased by more than 60%. The main drivers of this growth have been geopolitical tensions, particularly trade disputes between the US and China, expectations of aggressive monetary easing by the Federal Reserve, mass gold purchases by central banks, as well as a strengthening trend of dedollarization and active inflows into exchange-traded funds (ETFs) that invest in gold.
At the time of writing, gold prices were hovering around $4360 per ounce. The weakening of the US dollar, increased volatility in financial markets, and expectations of a soft monetary policy have made gold even more attractive for capital protection, as noted by many experts.
Market Predictions and Expectations
“The outlook for gold will largely depend on the trajectory of interest rates in 2026 and the relations between the US and China. If no agreements are reached and tensions escalate, gold could exceed $5000 per ounce.”
The financial group ANZ believes that by the end of 2025, the price of gold could rise to $4400 per ounce, and by mid-2026, it may peak around $4600. After the completion of the Federal Reserve’s rate-cutting cycle, analysts expect a potential market correction. The Trading Economics platform forecasts a stabilization of gold prices at around $4066 by the end of the current quarter and a potential increase to $4248 over the next year.
The main drivers of the “gold rally” remain:
- expectations of interest rate cuts by the Federal Reserve;
- weakening of the US dollar;
- escalation of trade relations between the US and China;
- increased demand for safe-haven assets;
- continuous gold purchases by central banks.
It is worth noting that the previous record price of gold was recorded on September 22 amid a significant correction in the cryptocurrency market.