Gold Prices Shatter Records in Historic Rally

Gold XC0009655157

The precious metal is experiencing an unprecedented surge, breaking through one price barrier after another. This relentless ascent is fueled by a combination of a sharply weakening US dollar and mounting geopolitical anxieties, driving investors toward the traditional safe-haven asset as structural market uncertainties grow and confidence in the dollar erodes.

A cornerstone of gold's strength is exceptionally robust physical demand from official institutions. Central banks continue to be aggressive purchasers, diversifying their reserves away from traditional currencies. Leading this charge are China, which has been systematically increasing its holdings for over a year, and Poland. Analysts at Goldman Sachs estimate ongoing monthly purchases from this sector averaging 60 tonnes.

This institutional interest is mirrored in the exchange-traded fund (ETF) space. Gold-backed ETFs witnessed historic inflows totaling $89 billion in 2025, underscoring sustained and significant institutional confidence in the metal's long-term value proposition.

A Plummeting Dollar Fuels the Fire

The primary engine behind gold's recent vertical climb is the US dollar's pronounced weakness, which has slumped to a four-year low. Market participants interpret recent commentary from US President Trump as signaling a politically desired depreciation of the currency. Given the historic inverse correlation between gold and the dollar, a cheaper greenback makes bullion less expensive for international buyers, significantly amplifying global demand.

The geopolitical landscape adds further momentum. An aggressive US tariff policy, visible tensions between the White House and the Federal Reserve, and the looming threat of a government shutdown until January 30 are unsettling markets. In this environment, gold serves as a classic stability anchor against political risk and the potential trend of de-dollarization.

Analysts Revise Targets Upward Amid Bullish Momentum

In response to these powerful dynamics, major investment banks are substantially raising their price forecasts. Goldman Sachs has adjusted its target to $5,400. Strategists at Deutsche Bank and Société Générale go further, viewing a rise to $6,000 as a realistic possibility. Trading activity confirms the bullish sentiment: the CME Group recently reported record-high volumes for traded gold contracts.

• Current Price: Gold is trading at a 52-week high of $5,056.60 per ounce.
• Year-to-Date Gain: The price has advanced by 16.46% since the start of the year.
• Key Catalysts: Central bank accumulation and a falling US dollar underpin the rally.

With momentum firmly on the side of the bulls, the path of least resistance for gold appears pointed upward. As long as the fundamental drivers—particularly dollar weakness and voracious central bank buying—remain in place, the record-breaking run may continue.

@ boerse-global.de | XC0009655157 GOLD