Gold prices are printing new highs in 2025 and are among the top-performing assets in the commodity markets. The XAU/USD index shows the precious metal trading at a day’s high of $2,948 in the charts. It is now on track to hit the $3,000 mark and hit a new all-time high. The glittery metal has surged 12.15% year-to-date generating remarkable returns to investors in 2025.
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The US stock market crash has led institutional investors to take an entry position in gold to protect their wealth. The metal has always been seen as a safe haven against market turmoil in times of economic uncertainties. Dow Jones is down for four consecutive days sparking fears of a bigger crash in the markets.
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Therefore, gold prices are gaining from the market tensions making it reach new highs in the indices. Apart from institutional funds, central banks of developing countries and retail investors are heavily accumulating the metal. This adds to the positive price run as the buying pressure is only increasing this year.
XAU/USD: Gold Close to Reaching $3,000
Gold has not seen a decline in buying pressure since February 2022 after Russia invaded Ukraine. The price has been on a steady rise since then and printed 28% gains in 2024 alone. It continued the rise in 2025 and is well positioned to reach the $3,000 mark next. The decline in the stock market is beneficial for the glittery metal as all eyes are on its performance.
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“Gold has traditionally been seen as a hedge against inflation,” said Ross Norman, CEO of Metals Daily to Kitco News. “As inflation rises, gold prices tend to follow suit. Although this pattern holds in the long term, over the short term it is behaving unexpectedly. In 2024, with inflation rates in the West declining fast, gold has bucked this trend, accelerating rather than slowing down as one might expect,” he summed it up.