Gold is making headlines again.
In the past year, gold prices have jumped over 40%, breaking past an all-time high of $3,500 per ounce.
That’s even higher than the legendary 1980 price when adjusted for inflation.
But the big question for traders is:
Is gold still a smart safe haven—or is this rally looking like a bubble?
Why Is Gold Booming Right Now?
Several global factors are driving gold’s price to these record levels:
1. Trade Tensions and Global Uncertainty
The ongoing trade conflicts and unpredictable geopolitical moves—especially from the U.S.—are making investors nervous.
When uncertainty rises, many traders move their money into gold, seen as a “safe” store of value.
2. Central Banks Are Buying Big
Since 2022, countries like China, Russia, and Turkey have been stockpiling gold, buying over 1,000 tonnes per year.
This is part of a strategy to reduce their reliance on the U.S. dollar and other traditional reserve currencies.
3. Inflation Fears and Slowing Economies
As inflation bites and global growth slows, investors look for assets that can protect their wealth.
Gold is one of the oldest inflation hedges out there.
Is It a Perfect Storm or a Classic Bubble?
Gold has a long history of big rallies followed by hard corrections:
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In 1980, gold prices crashed 65% within 18 months.
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In 2011, after a long rally, prices fell 35% over two years.
While some analysts, like Goldman Sachs, predict gold could hit $4,000 by 2026, others warn that if trade deals are made or central banks slow down their gold buying, the market could pull back.
FOMO Is Fueling the Fire
Many investors—especially retail traders—are jumping into gold because of fear of missing out (FOMO).
In London, queues in famous gold districts like Hatton Garden are growing, as people rush to cash in or buy.
But experts, including AJ Bell’s Russ Mould and World Gold Council’s Louise Street, warn that at these high levels, traders should be cautious.
Dips or sideways moves are still likely—even if the long-term trend stays positive.
Trade245 Takeaway: Manage the Gold Rush Carefully
At Trade245, we know gold remains a key tool in uncertain times, but it’s important to manage expectations.
✔ Gold is a hedge, not a guarantee.
✔ Have a clear risk plan before trading gold at these high prices.
✔ Diversify your trades—never rely only on gold.
Want to trade gold CFDs on your mobile?
Download the Trade245 app today on Android or iOS, and access gold, forex, and indices anytime, anywhere.
