Gold has been on a tear this year, and it just did something it has not done in more than four decades. For the first time since January 1980, the precious metal broke through its inflation-adjusted record, and it has continued to push higher since.
If you have been watching the markets, you already know that gold often shines brightest in times of uncertainty. Right now, it is not just keeping pace—it is outshining stocks, currencies, and almost every other major asset.
Why is gold hitting record highs right now?
The latest rally is not happening in a vacuum. Several factors are driving gold higher, and you might recognize some of them in the headlines every day:
- Global uncertainty: Geopolitical tensions, wars, and conflicts have investors looking for safe places to park their money.
- Concerns about the U.S. dollar: As the dollar weakens, gold tends to move in the opposite direction, becoming more attractive.
- Lower interest rate expectations: Many analysts believe the Federal Reserve is heading toward rate cuts, which usually boosts demand for non-yielding assets like gold.
Bloomberg was the first to point out that gold had finally broken past its inflation-adjusted 1980 record, factoring in decades of price increases. This is not just a small step—it is a historic milestone.
How high has gold climbed in 2025?
The numbers speak for themselves. Gold has already set 37 record closes this year, making it the best annual run since 1979. By comparison:
- The S&P 500 has set 28 record closes.
- The Nasdaq Composite has managed 19.
On Tuesday, Continuous Gold Contracts jumped another 0.58% to $3,796.90, finishing the day at yet another record after an intraday high. Year-to-date, gold is up 43.9%, a pace that leaves most other assets far behind.
How are investors reacting to gold’s surge?
When you see gold move like this, you can bet investors are paying attention. And they are not just watching—they are pouring money into gold-backed funds.
- The SPDR Gold Shares (GLD), the largest gold exchange-traded fund in the U.S., saw $2.2 billion in a single day of inflows. That is the biggest one-day inflow in its 21-year history.
- In total, GLD has pulled in $12.9 billion so far this year, putting it on track to break its previous record set in 2020.
- Other gold ETFs, like iShares Gold Trust (IAU) and SPDR Gold MiniShares (GLDM), are also growing quickly. Together, global gold ETFs are nearing $500 billion in assets under management.
Brandon Beylo from Macro Ops even shared data showing that these inflows have completely reversed a decade-long trend of sluggish ETF demand.
Is gold overbought or will it keep rising?
Some analysts point out that gold ETFs are now in “overbought” territory, based on technical indicators. That usually signals a pullback could be coming. But others believe the rally is far from over.
Why? Because the same conditions fueling gold’s rise—uncertainty, inflation fears, and rate cut expectations—are still very much in play. Hedge funds and institutional investors are betting big that gold has more room to run.
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