Gold price today touched new heights. For the first time in history, gold crossed $4,200 per ounce. The rally has lifted the metal nearly 60% in 2025. Investors are being warned: “own assets or be left behind.”

The surge comes as traders bet on more Fed rate cuts this year. US-China trade tensions have also fueled safe-haven demand. Bullion buyers are rushing in amid global uncertainty.

Gold futures climbed 1.8% on Wednesday to $4,218.29 per ounce. Meanwhile, silver surged above $53 an ounce, with tight London supply pushing prices higher. The gap between silver futures in New York and London widened to $1.05 per ounce, signaling extreme market stress.

Yields on U.S. Treasuries fell after Fed Chair Jerome Powell signaled the central bank is on track for another 0.25% rate cut. Lower yields make gold more attractive since it pays no interest.

Renewed US-China trade risks added to the rally. President Donald Trump threatened new tariffs, prompting Beijing to retaliate. Traders responded by buying safe-haven metals, driving both gold and silver higher.

Experts say the rally is backed by physical buying and central bank demand. “Central banks are buying huge quantities,” said Saad Rahim, chief economist at Trafigura Group. Investors seeking protection from budget deficits and global uncertainty are flocking to gold.

Technically, gold remains overbought, but the momentum is strong. Analysts see the $4,250 level next, while key support lies near $4,036.

Gold price today continues its historic run, fueled by rate-cut hopes, trade tensions, and record investor demand. The message is clear: own assets or risk being left behind.

Gold’s 2025 Rally: Up Nearly 60%

Gold futures jumped as much as 1.8%, reaching $4,218.29 on Wednesday. This marks a nearly 60% price rise for gold so far in 2025 — a remarkable surge that investors are calling historic. Analysts highlight growing physical demand, especially from central banks, as a key factor behind this rally.

Silver also surged over 3%, with spot silver briefly topping $53.55 an ounce before swinging sharply lower in volatile trading.

Fed signals more cuts as yields tumble

U.S. Treasury yields fell to their lowest levels in months after Fed Chair Jerome Powell signaled that the central bank remains on course to deliver another 0.25% rate cut later this month.

Lower yields and borrowing costs typically support gold, which pays no interest, making it more attractive to investors seeking value preservation.

The CME FedWatch Tool shows markets are pricing in over 90% probability of two more rate cuts — in October and December 2025.

Trump’s trade threat fuels safe-haven demand

Safe-haven buying intensified after President Donald Trump reignited trade tensions with China, threatening new 100% tariffs on Chinese imports.

Beijing vowed to retaliate, adding fresh uncertainty to global markets. The renewed tensions have led to a risk-off mood, driving more investors toward gold and silver.

Meanwhile, both nations imposed tit-for-tat port fees on exports, deepening trade friction.

Silver market faces supply squeeze

Silver’s rally has been driven by severe liquidity shortages in the London market, where traders report tight physical availability.

The price gap between London and New York silver reached about $1.05 per ounce on Wednesday, while the annualized borrowing cost for silver soared to 17%, near record highs.

Traders are also bracing for the outcome of the US administration’s Section 232 probe into critical minerals — including silver, platinum, and palladium — that could potentially lead to new tariffs.

Why gold’s rally shows no signs of slowing

Gold’s advance this year — between 60% and 82% across major precious metals — has been powered by central bank buying, rising ETF holdings, and a shift toward safe-haven assets amid global political uncertainty.

Analysts say the rally is increasingly supported by physical demand.

“Central banks are buying huge quantities,” said Saad Rahim, Chief Economist at Trafigura Group. “Fears of debt sustainability and lower rates have investors turning to gold for safety and store of value.”

The debasement trade — investors hedging against soaring U.S. budget deficits — has also driven record inflows into bullion.

Gold eyes $4,250 next

Technically, gold remains deep in overbought territory, with the 14-day RSI at 84, signaling a potential short-term pullback.

Still, momentum remains bullish. Gold is testing the upper boundary of its rising channel near $4,184.

• A daily close above $4,200 could trigger a move toward the $4,250 level.
  
  
• On the downside, support sits near $4,100, followed by the channel base around $4,036.
  
  
• A drop below $3,950 could confirm a deeper correction.

Gold price predictions for 2026

• Bank of America has raised its gold price target to $5,000 per ounce by 2026, with an average price forecast around $4,400. The bank cites a 14% increase in investment demand, ongoing central bank purchases, and supportive US fiscal and monetary conditions as key drivers. Silver is also expected to rise, with a 2026 target of $65 per ounce.
• Goldman Sachs forecasts a more moderate rise, with gold reaching $4,000 by mid-2026, driven by sustained demand from central banks, ETFs, and investors hedging economic risks.
• Other major banks have varied forecasts: JP Morgan expects gold above $4,000, UBS projects between $3,500 and $4,000, and Citibank estimates a range of $3,800 to $4,200, reflecting differences in weighing inflation, geopolitical risks, and monetary policy shifts.
• The technical forecast for gold in early 2026 shows potential price channels between roughly $3,100 and $4,000. Indicators such as RSI, MACD, and volume suggest mixed signals with cautious optimism. While some bearish reversal patterns indicate possible short-term corrections, the longer-term trend remains bullish due to strong demand and low Treasury yields.
• Analysts warn a healthy correction of 10-15% could occur after the 2025 surge, potentially pulling gold prices back to the $3,500-$3,600 range before resuming upward momentum. This would align with profit-taking and occasional strength in the US dollar or Treasury yields.

Traders will keep an eye on upcoming Fed speeches for fresh policy cues, as well as US-China trade headlines that could further drive safe-haven flows.

The People’s Bank of China (PBOC) also added to the market’s surprise by setting a stronger Yuan fix at 7.0995, compared to 7.1021 a day earlier — pressuring the U.S. dollar and indirectly supporting gold prices.

With Wall Street betting on two more rate cuts, and trade risks intensifying, analysts say gold remains a “buy-on-dips” trade for now.