Gold Price Rises: Investors Seek Safety

Gold Price Hits Record High: Macroeconomic Uncertainties Drive Investors to Safe Haven

2 September 2025 on 13: 24

Reading time: 2 minutes

Gold has reached an all-time high as rising macroeconomic uncertainties and inflation fears send investors flocking to this traditional safe haven.

On Tuesday morning, during early trading hours in Asia, the gold price reached a record high of $3.508,70 per troy ounce (31,1 grams). This surpassed the previous record of $3.500,10 set in April. This earlier record was reached after the US President Donald Trump announced a series of import duties on Liberation Day.

Macroeconomic instability and inflation fears drive gold prices

Market analysts see the recent rise in gold prices as an investor reaction to increasing macroeconomic instability and growing fears of inflation. Financial markets are concerned about the independence of the US central bank after recent pressure from Trump Fed Chairman Jerome Powell and the announcement of the resignation of Fed Director Lisa Cook. Parallel to this, investors are anticipating a possible interest rate cut in the US in the coming months.

Banks predict further rise in gold price

Goldman Sachs, the investment bank, expects the gold price to rise further in the coming months. According to the bank, the $4.000 per troy ounce barrier could be broken within a year. Swiss bank UBS was slightly less optimistic two weeks ago, but also predicts a further rise to $3.700 per ounce.

The gold price has doubled since 2023, primarily due to central banks resuming gold purchases. The central banks of China, India, Turkey, and Poland, in particular, have actively purchased gold in the past year. Last year, gold already displaced the euro as the world's second-largest reserve currency, after the dollar.

Silver follows the popularity of gold

In the wake of gold's popularity, the price of silver has also risen significantly. On Monday, the silver price broke through $2011 per troy ounce for the first time since 40, making it 44 percent more expensive since the beginning of the year.

Frequently Asked Questions

What caused the gold price to reach a record high?
Gold prices have reached record highs as rising macroeconomic uncertainties and inflation fears have sent investors fleeing to this traditional safe haven.

What do banks predict for the future of gold prices?
Investment bank Goldman Sachs expects the gold price to continue rising in the coming months and could break the $4.000 per troy ounce barrier within a year. Swiss bank UBS predicts a further rise to $3.700 per ounce.

How has the price of silver reacted to the rise in the price of gold?
Following the popularity of gold, the price of silver has also risen significantly. On Monday, the silver price broke the $40 per troy ounce mark for the first time since 2011, making it 44 percent more expensive since the beginning of the year.

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