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EMK – Your premium distributor for coins and precious metals
October 8th, 2025
First time at $4,000: Why the price of gold keeps rising
This year alone, the precious metal has already gained more than 50 percent in value, leaving other forms of investment trailing behind.
What are the reasons for the continuing “gold rush”?
What are the reasons for the continuing “gold rush”?
London/Frankfurt (dpa) - The price of gold has been soaring for weeks and has broken the next record. On Tuesday night, an ounce (about 31.1 grams) of the precious metal cost more than $4,000 for the first time and reached a record high of $4,050 in the afternoon. The price of gold has been trending upward for two years now. Since the end of 2024 alone, the precious metal has already risen in price by around 54 percent.
What are the factors driving prices up?
It is a combination of various factors that is driving the ever-increasing demand for gold. Recently, however, political crises have come to the fore. With the budget dispute in the US and the shutdown of numerous American government agencies, as well as the escalating political crisis in France, many investors are increasingly turning to gold, which is considered a safe haven in times of political uncertainty.
What other reasons are there for the price increase?
These include, above all, speculation about falling interest rates in the US and the purchase of gold by central banks that want to make their national reserves less dependent on the US dollar. Gold purchases by gold funds and a weak dollar also play a role. Since gold is traded in US dollars, a devaluation of the dollar makes gold cheaper for investors outside the US, which drives demand and prices. Uncertainty about other currencies also reinforces the flight to precious metals.
Does inflation also play a role?
Yes. Gold is also considered a hedge against inflation. When price increases are expected, investors buy gold to preserve their assets. If inflation is higher than nominal interest rates, this puts a strain on savings deposits. Although gold does not generate any current income, the price of gold has kept pace with inflation in many phases to date.
Why is gold in particular in demand in uncertain times?
For thousands of years, gold has been regarded as a safe haven because it can be exchanged even in times of crisis. Unlike currencies, which can be influenced by monetary policy decisions, or stocks, which reflect corporate risks or opportunities, gold retains its value across borders and political systems. Gold is stable and can be divided and transported.
What does the increase mean for retailers and consumers?
“Neither industry nor retailers can absorb the rise in gold prices in their calculations,” said Joachim Dünkelmann, managing director of the German Jewelers, Jewelry, and Watch Retailers Association. Many suppliers will have to adjust their prices. However, Dünkelmann has not noticed any reluctance among customers. “We are currently seeing neither a trend toward lower-quality alloys nor a shift away from gold to other precious metals.” However, this acceptance on the part of customers may not remain the case.
Why are central banks buying more gold?
In the past, jewelry was a major driver of gold demand, but now a large part of it is accounted for by investments and central bank purchases. Central banks buy gold for strategic reasons, primarily related to economic security and independence. Monetary authorities, particularly in countries such as China and other emerging economies, want to reduce their dependence on the US dollar by building up their gold reserves. Countries subject to sanctions also prefer gold.
It is a combination of various factors that is driving the ever-increasing demand for gold. Recently, however, political crises have come to the fore. With the budget dispute in the US and the shutdown of numerous American government agencies, as well as the escalating political crisis in France, many investors are increasingly turning to gold, which is considered a safe haven in times of political uncertainty.
What other reasons are there for the price increase?
These include, above all, speculation about falling interest rates in the US and the purchase of gold by central banks that want to make their national reserves less dependent on the US dollar. Gold purchases by gold funds and a weak dollar also play a role. Since gold is traded in US dollars, a devaluation of the dollar makes gold cheaper for investors outside the US, which drives demand and prices. Uncertainty about other currencies also reinforces the flight to precious metals.
Does inflation also play a role?
Yes. Gold is also considered a hedge against inflation. When price increases are expected, investors buy gold to preserve their assets. If inflation is higher than nominal interest rates, this puts a strain on savings deposits. Although gold does not generate any current income, the price of gold has kept pace with inflation in many phases to date.
Why is gold in particular in demand in uncertain times?
For thousands of years, gold has been regarded as a safe haven because it can be exchanged even in times of crisis. Unlike currencies, which can be influenced by monetary policy decisions, or stocks, which reflect corporate risks or opportunities, gold retains its value across borders and political systems. Gold is stable and can be divided and transported.
What does the increase mean for retailers and consumers?
“Neither industry nor retailers can absorb the rise in gold prices in their calculations,” said Joachim Dünkelmann, managing director of the German Jewelers, Jewelry, and Watch Retailers Association. Many suppliers will have to adjust their prices. However, Dünkelmann has not noticed any reluctance among customers. “We are currently seeing neither a trend toward lower-quality alloys nor a shift away from gold to other precious metals.” However, this acceptance on the part of customers may not remain the case.
Why are central banks buying more gold?
In the past, jewelry was a major driver of gold demand, but now a large part of it is accounted for by investments and central bank purchases. Central banks buy gold for strategic reasons, primarily related to economic security and independence. Monetary authorities, particularly in countries such as China and other emerging economies, want to reduce their dependence on the US dollar by building up their gold reserves. Countries subject to sanctions also prefer gold.
Why are security-conscious investors not buying government bonds?
Political crises are also playing an important role here. There is concern on the markets that countries such as the US, Japan, and France will continue to drive up their national debt. Investors fear that too little effort is being made to consolidate budgets. There is also the threat of negative ratings from the leading rating agencies.
How does this compare with other asset classes?
Other precious metals are also gaining ground. However, with an increase of more than half, gold is outperforming most other asset classes this year. Even Bitcoin, which like gold is benefiting from geopolitical crises and political uncertainty, cannot keep up.
Can the price of silver also rise so sharply?
The price of silver has also been moving in only one direction since the beginning of the year: upward. Similar to the price of gold, the record chase has accelerated significantly since September. The price of silver also benefited from strong demand and reached a record high at around the same time as the price of gold. However, at $48.93 per troy ounce, it is still well below the price of gold.
Has gold become too expensive for private investors?
Apparently not. Despite record prices, precious metal dealers such as Alexander Zumpfe from the Heraeus trading house have not yet seen any impact from the high prices: “In Germany, demand from private investors remains high, despite the significant increase in prices,” he said. The strong interest is also reflected in the demand for exchange-traded securities backed by physical gold (ETFs). Analysts at Postbank point to record purchases in September.
How far can the gold price still rise?
Experts agree that the rise in the gold price is not yet over. Commerzbank expert Thu Lan Nguyen sees further upside potential due to the expected interest rate cut in the US and has raised her forecast to US$4,200 by the end of next year. According to Heraeus trader Zumpfe, the momentum of the price rally on the gold market is likely to depend on the interest rate decisions of the US Federal Reserve. If interest rates in the world's largest economy continue to fall, there is a chance that the record chase will continue.
Source: dpa, Author: Jürgen Krämer
Political crises are also playing an important role here. There is concern on the markets that countries such as the US, Japan, and France will continue to drive up their national debt. Investors fear that too little effort is being made to consolidate budgets. There is also the threat of negative ratings from the leading rating agencies.
How does this compare with other asset classes?
Other precious metals are also gaining ground. However, with an increase of more than half, gold is outperforming most other asset classes this year. Even Bitcoin, which like gold is benefiting from geopolitical crises and political uncertainty, cannot keep up.
Can the price of silver also rise so sharply?
The price of silver has also been moving in only one direction since the beginning of the year: upward. Similar to the price of gold, the record chase has accelerated significantly since September. The price of silver also benefited from strong demand and reached a record high at around the same time as the price of gold. However, at $48.93 per troy ounce, it is still well below the price of gold.
Has gold become too expensive for private investors?
Apparently not. Despite record prices, precious metal dealers such as Alexander Zumpfe from the Heraeus trading house have not yet seen any impact from the high prices: “In Germany, demand from private investors remains high, despite the significant increase in prices,” he said. The strong interest is also reflected in the demand for exchange-traded securities backed by physical gold (ETFs). Analysts at Postbank point to record purchases in September.
How far can the gold price still rise?
Experts agree that the rise in the gold price is not yet over. Commerzbank expert Thu Lan Nguyen sees further upside potential due to the expected interest rate cut in the US and has raised her forecast to US$4,200 by the end of next year. According to Heraeus trader Zumpfe, the momentum of the price rally on the gold market is likely to depend on the interest rate decisions of the US Federal Reserve. If interest rates in the world's largest economy continue to fall, there is a chance that the record chase will continue.
Source: dpa, Author: Jürgen Krämer
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EMK – Your premium distributor for coins and precious metals
October 8th, 2025
First time at $4,000: Why the price of gold keeps rising
This year alone, the precious metal has already gained more than 50 percent in value, leaving other forms of investment trailing behind.
What are the reasons for the continuing “gold rush”?
What are the reasons for the continuing “gold rush”?
London/Frankfurt (dpa) - The price of gold has been soaring for weeks and has broken the next record. On Tuesday night, an ounce (about 31.1 grams) of the precious metal cost more than $4,000 for the first time and reached a record high of $4,050 in the afternoon. The price of gold has been trending upward for two years now. Since the end of 2024 alone, the precious metal has already risen in price by around 54 percent.
What are the factors driving prices up?
It is a combination of various factors that is driving the ever-increasing demand for gold. Recently, however, political crises have come to the fore. With the budget dispute in the US and the shutdown of numerous American government agencies, as well as the escalating political crisis in France, many investors are increasingly turning to gold, which is considered a safe haven in times of political uncertainty.
What other reasons are there for the price increase?
These include, above all, speculation about falling interest rates in the US and the purchase of gold by central banks that want to make their national reserves less dependent on the US dollar. Gold purchases by gold funds and a weak dollar also play a role. Since gold is traded in US dollars, a devaluation of the dollar makes gold cheaper for investors outside the US, which drives demand and prices. Uncertainty about other currencies also reinforces the flight to precious metals.
Does inflation also play a role?
Yes. Gold is also considered a hedge against inflation. When price increases are expected, investors buy gold to preserve their assets. If inflation is higher than nominal interest rates, this puts a strain on savings deposits. Although gold does not generate any current income, the price of gold has kept pace with inflation in many phases to date.
Why is gold in particular in demand in uncertain times?
For thousands of years, gold has been regarded as a safe haven because it can be exchanged even in times of crisis. Unlike currencies, which can be influenced by monetary policy decisions, or stocks, which reflect corporate risks or opportunities, gold retains its value across borders and political systems. Gold is stable and can be divided and transported.
What does the increase mean for retailers and consumers?
“Neither industry nor retailers can absorb the rise in gold prices in their calculations,” said Joachim Dünkelmann, managing director of the German Jewelers, Jewelry, and Watch Retailers Association. Many suppliers will have to adjust their prices. However, Dünkelmann has not noticed any reluctance among customers. “We are currently seeing neither a trend toward lower-quality alloys nor a shift away from gold to other precious metals.” However, this acceptance on the part of customers may not remain the case.
Why are central banks buying more gold?
In the past, jewelry was a major driver of gold demand, but now a large part of it is accounted for by investments and central bank purchases. Central banks buy gold for strategic reasons, primarily related to economic security and independence. Monetary authorities, particularly in countries such as China and other emerging economies, want to reduce their dependence on the US dollar by building up their gold reserves. Countries subject to sanctions also prefer gold.
It is a combination of various factors that is driving the ever-increasing demand for gold. Recently, however, political crises have come to the fore. With the budget dispute in the US and the shutdown of numerous American government agencies, as well as the escalating political crisis in France, many investors are increasingly turning to gold, which is considered a safe haven in times of political uncertainty.
What other reasons are there for the price increase?
These include, above all, speculation about falling interest rates in the US and the purchase of gold by central banks that want to make their national reserves less dependent on the US dollar. Gold purchases by gold funds and a weak dollar also play a role. Since gold is traded in US dollars, a devaluation of the dollar makes gold cheaper for investors outside the US, which drives demand and prices. Uncertainty about other currencies also reinforces the flight to precious metals.
Does inflation also play a role?
Yes. Gold is also considered a hedge against inflation. When price increases are expected, investors buy gold to preserve their assets. If inflation is higher than nominal interest rates, this puts a strain on savings deposits. Although gold does not generate any current income, the price of gold has kept pace with inflation in many phases to date.
Why is gold in particular in demand in uncertain times?
For thousands of years, gold has been regarded as a safe haven because it can be exchanged even in times of crisis. Unlike currencies, which can be influenced by monetary policy decisions, or stocks, which reflect corporate risks or opportunities, gold retains its value across borders and political systems. Gold is stable and can be divided and transported.
What does the increase mean for retailers and consumers?
“Neither industry nor retailers can absorb the rise in gold prices in their calculations,” said Joachim Dünkelmann, managing director of the German Jewelers, Jewelry, and Watch Retailers Association. Many suppliers will have to adjust their prices. However, Dünkelmann has not noticed any reluctance among customers. “We are currently seeing neither a trend toward lower-quality alloys nor a shift away from gold to other precious metals.” However, this acceptance on the part of customers may not remain the case.
Why are central banks buying more gold?
In the past, jewelry was a major driver of gold demand, but now a large part of it is accounted for by investments and central bank purchases. Central banks buy gold for strategic reasons, primarily related to economic security and independence. Monetary authorities, particularly in countries such as China and other emerging economies, want to reduce their dependence on the US dollar by building up their gold reserves. Countries subject to sanctions also prefer gold.
Why are security-conscious investors not buying government bonds?
Political crises are also playing an important role here. There is concern on the markets that countries such as the US, Japan, and France will continue to drive up their national debt. Investors fear that too little effort is being made to consolidate budgets. There is also the threat of negative ratings from the leading rating agencies.
How does this compare with other asset classes?
Other precious metals are also gaining ground. However, with an increase of more than half, gold is outperforming most other asset classes this year. Even Bitcoin, which like gold is benefiting from geopolitical crises and political uncertainty, cannot keep up.
Can the price of silver also rise so sharply?
The price of silver has also been moving in only one direction since the beginning of the year: upward. Similar to the price of gold, the record chase has accelerated significantly since September. The price of silver also benefited from strong demand and reached a record high at around the same time as the price of gold. However, at $48.93 per troy ounce, it is still well below the price of gold.
Has gold become too expensive for private investors?
Apparently not. Despite record prices, precious metal dealers such as Alexander Zumpfe from the Heraeus trading house have not yet seen any impact from the high prices: “In Germany, demand from private investors remains high, despite the significant increase in prices,” he said. The strong interest is also reflected in the demand for exchange-traded securities backed by physical gold (ETFs). Analysts at Postbank point to record purchases in September.
How far can the gold price still rise?
Experts agree that the rise in the gold price is not yet over. Commerzbank expert Thu Lan Nguyen sees further upside potential due to the expected interest rate cut in the US and has raised her forecast to US$4,200 by the end of next year. According to Heraeus trader Zumpfe, the momentum of the price rally on the gold market is likely to depend on the interest rate decisions of the US Federal Reserve. If interest rates in the world's largest economy continue to fall, there is a chance that the record chase will continue.
Source: dpa, Author: Jürgen Krämer
Political crises are also playing an important role here. There is concern on the markets that countries such as the US, Japan, and France will continue to drive up their national debt. Investors fear that too little effort is being made to consolidate budgets. There is also the threat of negative ratings from the leading rating agencies.
How does this compare with other asset classes?
Other precious metals are also gaining ground. However, with an increase of more than half, gold is outperforming most other asset classes this year. Even Bitcoin, which like gold is benefiting from geopolitical crises and political uncertainty, cannot keep up.
Can the price of silver also rise so sharply?
The price of silver has also been moving in only one direction since the beginning of the year: upward. Similar to the price of gold, the record chase has accelerated significantly since September. The price of silver also benefited from strong demand and reached a record high at around the same time as the price of gold. However, at $48.93 per troy ounce, it is still well below the price of gold.
Has gold become too expensive for private investors?
Apparently not. Despite record prices, precious metal dealers such as Alexander Zumpfe from the Heraeus trading house have not yet seen any impact from the high prices: “In Germany, demand from private investors remains high, despite the significant increase in prices,” he said. The strong interest is also reflected in the demand for exchange-traded securities backed by physical gold (ETFs). Analysts at Postbank point to record purchases in September.
How far can the gold price still rise?
Experts agree that the rise in the gold price is not yet over. Commerzbank expert Thu Lan Nguyen sees further upside potential due to the expected interest rate cut in the US and has raised her forecast to US$4,200 by the end of next year. According to Heraeus trader Zumpfe, the momentum of the price rally on the gold market is likely to depend on the interest rate decisions of the US Federal Reserve. If interest rates in the world's largest economy continue to fall, there is a chance that the record chase will continue.
Source: dpa, Author: Jürgen Krämer