Gold Reaches Multiple 2025 Record Highs Amid US, Global Inflation Concerns

Gold prices have reached new record highs in 2025, with the metal trading near or above $3,500 per ounce, reflecting heightened investor demand amid economic uncertainty and geopolitical tensions. The rally is driven by concerns over inflation, ballooning government debt, and questions about the Federal Reserve's independence, especially following President Donald Trump's unprecedented move to fire Fed governor Lisa Cook, which has raised doubts about the central bank's autonomy. Gold ETFs have seen substantial inflows, with global investments totaling nearly $43 billion this year, supported by central bank purchases and strong physical demand. August marked the seventh record month of the year for gold prices, with sharp weekly gains fueled by rebounding inflation data in Europe and the US, further amplifying gold’s status as a safe haven asset. Despite occasional pullbacks, technical indicators suggest that a decisive breakout above $3,500 could attract momentum traders and sustain this exceptional performance. Overall, gold continues to serve as a preferred hedge against market volatility and economic challenges, as investors navigate a complex global environment.