Gold Hits $4,000 for the First Time in History

Gold opens its US$4,000/oz chapter

Gold reached another historic milestone on 8 October 2025 as it broke through US$4,000/oz. And while it finished the week below the record high, it’s en route to mark its strongest performance in a calendar year since 1979. Gold is only 729 days into this rally – previous major rallies have lasted on average 1,062 days.

What is driving gold's move?

Our analysis suggests that this year’s rally has been fuelled by increased investment demand, led by the west, as investors worldwide seek safe haven amid geopolitical tensions, dollar weakness, expectations of further Fed cuts, and fears of an equity market correction. Continued central bank buying has helped too, both in driving offtake but also cementing the positive narrative.

The pace at which the gold price has increased is notable, given gold climbed from US$3,500/oz to US$4,000/oz in just 36 days, compared to an average of 1,036 days between prior US$500/oz incremental milestones.

There are reasons to believe that gold’s run has not run out of steam, especially in the broader macroeconomic context. For example: high real rates that are likely coming down, tight credit spreads that can widen, lofty stock markets that can easily correct, among others.

Short-term volatility may arise from portfolio rebalancing, market corrections, and technical signals, while long-term resilience is underpinned by a broadening investor base, persistent policy uncertainty and a gold investment market that still has room to grow. 

 

Source: World Gold Council