Gold rally: Investors drive prices toward $5,000 amid instability

Yellow metal hits record high as investors pile in to safe haven amid mounting geopolitical and economic turmoil.

  • PUBLISHED: Mon 8 Sept 2025, 12:04 PM
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Gold prices are expected to continue upward trend on strong demand from the investors and end-users due to uncertain geopolitical situation, economic instability in major economies and expected interest rate cut by the US Federal Reserve (Fed) later this month, experts say.

Analysts and market expert say yellow metal may cross $5,000 per ounce by the end of first quarter of 2026 as global investors accelerate their flight to safety amid mounting geopolitical and economic turmoil.       
Nigel Green, CEO of global financial advisory giant deVere Group, says gold’s surge into record territory underscores the scale of unease among investors. 

“Currently, we predict the price will reach $5,000 per ounce by the end of the first quarter of 2026. The drivers are already in place and momentum is compounding,” Green told BTR.

The Gold price extends the rally to near $3,590 during the early Asian session on Monday. The precious metal edges higher near an all-time high as soft US jobs data further cemented expectations for a US Federal Reserve (Fed) rate cut later this month.

The precious metal is trading at its strongest levels in history, lifted by expectations of imminent US interest rate cuts, a weakening dollar, and unprecedented central bank demand.
The Federal Reserve is widely expected to announce a rate cut this month as the US labor market softens and recession risks mount. Lower rates reduce the appeal of cash deposits and government bonds, while simultaneously supporting bullion.

“Each cut removes oxygen from cash and bonds, leaving gold as the standout alternative,” notes the deVere CEO. 

“With inflation still running above target and government debt expanding at record speed, investors are seeking a store of value that requires no political guarantees.”

US data matters

Rania Gule, Senior Market Analyst at XS.com – Mena, said gold continued its remarkable rise, approaching the $3,590 level during early Asian trading on Monday, on a bullish trajectory nearing its all-time highs.

“This movement reflects the markets’ direct response to recent US data, particularly the nonfarm payroll report, which revealed a significant slowdown in hiring during August and an increase in the unemployment rate to its highest level since 2021. In my view, this performance indicates a weakening US labour market. It reinforces expectations that the Federal Reserve may ease monetary policy at its upcoming meeting, lowering the opportunity cost of holding gold and enhancing its appeal as a safe-haven asset,” Gule told BTR.

Stagnant output

On the supply side, Green said constraints remain entrenched. Global mine output has stagnated, discoveries are increasingly scarce, and environmental costs are rising.

“When overwhelming demand collides with flat supply, there is only one logical direction for price. This imbalance will not resolve quickly, which is why we expect gold’s trajectory to remain sharply upward,” he said.

“Gold thrives in environments where governments appear unpredictable,” Green notes. 

“Attacks on the independence of the Federal Reserve, erratic trade policy, and spiralling deficits are all elements that erode confidence in fiat currencies. Investors respond by turning to assets that are politically neutral and globally recognised. Gold is reflecting today’s reality of high debt, unstable currencies, and structural inflation,” he added.

As the new week begins, Gule said gold is showing signs of upward consolidation just below the $3,600 mark, the record high it reached last Friday. Despite a slight rebound in the US dollar from its lowest levels since late July, the current fluctuation reflects a period of anticipation among traders ahead of upcoming US inflation data, which could directly influence monetary policy expectations.

“In this context, gold remains sensitive to every move in the dollar: any significant strengthening of the US currency could pressure the metal, while a weaker dollar would support continued gains,” she said.

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