We're seeing a bull market like we haven't seen in years! Gold, the world's oldest currency, is once again proving why it is the king of precious metals. We have just crossed the historic $4,000 per ounce mark, and the quotation remains at unprecedentedly high levels - currently in the vicinity of $3960 - $4015 USD/oz (data as of 10/10/2025).
What's behind this crazy rally and is this just the beginning? 🧐
The current dynamic situation in the gold market is no coincidence. It is a perfect storm of economic and geopolitical factors:
The biggest catalyst for recent increases. The world is tight and investors are fleeing risky assets. Gold has traditionally been seen as a "safe haven," independent of currencies and banks. The more crises, the more expensive bullion becomes.
The price of gold is priced in dollars. When the USD exchange rate falls, gold becomes cheaper for investors using the euro, yen or yuan. Increased international demand drives up the global price in USD. We observe a clear inverse correlation!
Despite attempts by central banks, concerns about the loss of purchasing power of money remain. At a time when currencies are being "printed," gold is seen as a sure store of value. Investors are buying bullion en masse to protect their capital.
Not only small investors, but also giants are buying! Central banks around the world (especially in the East) continue to aggressively increase their gold reserves, viewing it as a strategic hedge and alternative to the dollar. This steady demand from powerful institutions provides a solid foundation for the current listing.
The markets are waiting to see when the U.S. central bank (Fed) will end its cycle of hikes and begin lowering interest rates. Low rates are gold's best friend, as bonds and deposits become less attractive compared to bullion, which does not generate interest.
Analysts are optimistic. Forecasts say that gold can reach $4900 USD per ounce in the next 1-2 years!
In the face of ongoing global uncertainty and stable institutional demand, gold remains a key portfolio element for anyone who values security and stability.