Gold’s historic rally above $3,500 an ounce has put the precious metal on track for its best annual performance in 46 years, fueled by a weakening U.S. dollar, expectations of a Federal Reserve interest rate cut, and deep-seated concerns over the stability of traditional financial systems.
Gold Surge Represents Shift In Investor Sentiment
Experts suggest the surge represents a fundamental shift in investor sentiment. Eugenia Mykuliak, Founder of B2PRIME Group, states the rally reflects “a broader loss of trust in policy and currency stability,” cementing gold’s role as a primary safe-haven asset.
The move has been driven by what analysts see as a perfect storm of economic and political factors. Darshan Desai, CEO of Aspect Bullion & Refinery, notes that “persistent weakness in the U.S. labour market… has strengthened expectations of a Federal Reserve rate cut on September 17.”
This sentiment was echoed dramatically by Spencer Hakimian, Founder of Tolou Capital Management, who pointed to a chart showing gold rocketing while the dollar collapsed, stating, “The most telling price action after Powell caved? … We are a 3rd world country.” Adding to the demand, central banks in China, Turkey, and India continue to build their gold reserves, creating a strong floor for prices.
Gold To The Moon? GS Sees $5000 Per Ounce
Wall Street is taking note, with major institutions updating their forecasts. According to a post by Lisa Abramowicz, “Goldman Sachs expects gold to surge to $4,000 an ounce by mid-2026,” adding that the investment bank “sees gold nearing $5,000” if the Fed’s credibility is significantly eroded.
Mykuliak sees a more immediate path forward, expecting the price to head toward a “$3,600-$3,800 as the next target range, with $4,000 as a realistic peak.”
See Also: Dollar ‘Fall Is Over’ Says Expert As USD Has Been ‘Unchanged’ For 5 Months Amid Negative Consensus
Best Price Surge In 46 Years
This year’s performance has been remarkable. Data highlighted by Charlie Bilello, Chief Market Strategist at Creative Planning, shows gold is “on pace for its best year since 1979, up over 35% in 2025.”
This places the current rally in a historic context, surpassed only by the 126.5% gain seen 46 years ago. Investors are now closely watching upcoming non-farm payrolls data, which Desai says is “expected to play a crucial role in shaping gold’s short-term direction.”
Price Action
Gold Spot US Dollar rose 0.15% to hover around $3,551.19 per ounce. Its last record high stood at $3,578.80 per ounce.
It was up 42.27% over a year and 21.71% in the last six months.
Here are some gold and gold miners linked exchange-traded funds that investors can consider as gold rallies.
| Gold ETFs | YTD Performance | One Year Performance |
| Franklin Responsibly Sourced Gold ETF (NYSE:FGDL) | 33.70% | 41.35% |
| Goldman Sachs Physical Gold ETF (BATS:AAAU) | 33.30% | 40.91% |
| GraniteShares Gold Trust (NYSE:BAR) | 33.38% | 41.02% |
| VanEck Merk Gold ETF (NYSE:OUNZ) | 33.23% | 40.91% |
| SPDR Gold Trust (NYSE:GLD) | 33.11% | 40.60% |
| iShares Gold Trust (NYSE:IAU) | 33.31% | 40.83% |
| SPDR Gold MiniShares Trust (NYSE:GLDM) | 33.36% | 41.02% |
| abrdn Physical Gold Shares ETF (NYSE:SGOL) | 33.32% | 40.92% |
| iShares Gold Trust Micro (NYSE:IAUM) | 33.48% | 41.09% |
| Invesco DB Precious Metals Fund (NYSE:DBP) | 32.87% | 34.86% |
| Gold Miner ETFs | YTD Performance | One Year Performance |
| VanEck Gold Miners ETF (NYSE:GDX) | 82.71% | 72.97% |
| VanEck Junior Gold Miners ETF (NYSE:GDXJ) | 84.43% | 87.53% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Friday. The SPY was up 0.18% at $650.30, while the QQQ advanced 0.55% to $578.40, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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