Gold set for its best year since 1979
Gold is on track for its strongest year since 1979, with New York-traded gold futures surging nearly 71% in 2025.
The last comparable year was marked by President Jimmy Carter’s tenure, a Middle East crisis, soaring inflation, and a US energy crisis, News.Az reports, citing CNN.
Today, global uncertainties are driving investors toward gold. Tariffs are disrupting international trade, Russia continues its war in Ukraine, tensions flare between Israel and Iran, and the US is seizing oil tankers near Venezuela. In such volatile conditions, gold is seen as a safe haven.
“Uncertainty remains a defining feature of the global economy,” said Joe Cavatoni, senior market strategist at the World Gold Council. “In this environment, gold has become increasingly appealing as a strategic diversifier and a source of stability.”
While gold does not generate income like bonds, recent Federal Reserve interest rate cuts have reduced bond yields, enhancing gold’s appeal.
Gold futures began 2025 at around $2,640 per troy ounce and climbed past a record $4,500 per troy ounce on Monday. JPMorgan Chase analysts predict prices could exceed $5,000 per troy ounce by 2026.
Gold’s 71% gain this year far outpaces the S&P 500, which rose just 18%. In 2024, gold futures increased 27%, while the S&P gained 24%.
Expectations of Fed rate cuts in 2026, combined with a weaker US dollar, are supporting gold’s ascent, making it more affordable for international investors.
Both gold investors and jewelers are reaping benefits from the rising prices. The surge is not limited to Americans buying gold bars; nations around the world are purchasing gold by the ton.
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