Why Has Gold Smashed Through US$4,500 and Could the Rally Go Even Further?
Source: Kapitales Research
Highlights:
Gold surged above US$4,500 an ounce for the first time, with spot prices rising about 1.5% on the session and year-to-date gains topping 70%.
At the time of writing, traders were betting on further US interest rate cuts, which continue to support demand for non-yielding assets like gold.
Rising geopolitical tensions, including renewed pressure on Venezuela, have strengthened gold’s appeal as a safe-haven investment.
Gold Enters Record Territory
Gold pushed through US$4,500 an ounce to a new record as escalating global tensions and hopes of easier US monetary policy boosted investor demand. At the time of writing, spot gold was trading around US$4,504.59 an ounce, up about 1.5% on the session. The latest move has pushed gold’s gains for the year past 70%, putting 2025 on track to become the metal’s strongest year in more than four decades.
Rate-Cut Expectations Are Powering the Rally
A key driver behind gold’s surge is the belief that the Federal Reserve will continue easing monetary policy. Traders are increasingly pricing in another interest rate cut next year, following a sequence of reductions already delivered. When interest rates fall, the disadvantage of owning gold — which pays no income — becomes smaller, boosting its appeal compared with cash and fixed income. At the time of writing, this remains a key support for the gold price.
Geopolitical Tensions Boost Safe-Haven Demand
Gold’s traditional role as a store of value has also been reinforced by rising global risks. In recent days, geopolitical tensions have escalated, particularly in Venezuela, where the United States has intensified pressure on President Nicolás Maduro’s government by blocking oil tanker movements. Such developments have raised concerns about potential disruptions to global energy supply and broader political instability, driving investors toward assets perceived as safer during periods of uncertainty.
What It Means for Investors
The sharp rise in gold has been a major win for investors who positioned early, but it also raises questions about sustainability and valuation. While momentum remains strong, gold is now trading at levels that were unimaginable only a year ago. At the time of writing, markets remain supportive of the metal, with central bank buying, geopolitical risk and monetary easing all pointing in the same direction. Whether gold can continue to climb from here will depend on how long these forces remain in play — but for now, the precious metal’s historic run shows no clear sign of slowing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Why Has Gold Smashed Through US$4,500 and Could the Rally Go Even Further?
Highlights:
Gold Enters Record Territory
Gold pushed through US$4,500 an ounce to a new record as escalating global tensions and hopes of easier US monetary policy boosted investor demand. At the time of writing, spot gold was trading around US$4,504.59 an ounce, up about 1.5% on the session. The latest move has pushed gold’s gains for the year past 70%, putting 2025 on track to become the metal’s strongest year in more than four decades.
Rate-Cut Expectations Are Powering the Rally
A key driver behind gold’s surge is the belief that the Federal Reserve will continue easing monetary policy. Traders are increasingly pricing in another interest rate cut next year, following a sequence of reductions already delivered. When interest rates fall, the disadvantage of owning gold — which pays no income — becomes smaller, boosting its appeal compared with cash and fixed income. At the time of writing, this remains a key support for the gold price.
Geopolitical Tensions Boost Safe-Haven Demand
Gold’s traditional role as a store of value has also been reinforced by rising global risks. In recent days, geopolitical tensions have escalated, particularly in Venezuela, where the United States has intensified pressure on President Nicolás Maduro’s government by blocking oil tanker movements. Such developments have raised concerns about potential disruptions to global energy supply and broader political instability, driving investors toward assets perceived as safer during periods of uncertainty.
What It Means for Investors
The sharp rise in gold has been a major win for investors who positioned early, but it also raises questions about sustainability and valuation. While momentum remains strong, gold is now trading at levels that were unimaginable only a year ago. At the time of writing, markets remain supportive of the metal, with central bank buying, geopolitical risk and monetary easing all pointing in the same direction. Whether gold can continue to climb from here will depend on how long these forces remain in play — but for now, the precious metal’s historic run shows no clear sign of slowing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au