Over the past five years, gold has navigated a volatile path shaped by the pandemic, shifting interest rates, and geopolitical shocks. The metal, long regarded as a safe haven, has seen both record-breaking rallies and sharp corrections, reflecting global economic turbulence and investors’ shifting appetite for risk.
Pandemic surge and record highs
In 2020, as the COVID-19 pandemic triggered unprecedented economic shutdowns and fears of a deep global recession, gold surged. Investors rushed to the metal as central banks unleashed stimulus programmes and cut interest rates to near zero. By August 2020, gold hit an all-time high of around $2,070 per ounce, cementing its role as a hedge against uncertainty.
Stabilisation and renewed volatility
Following its peak, gold prices moderated in 2021 as economies began reopening and equity markets regained strength. Yet inflationary pressures soon re-emerged, particularly in the United States and Europe. By mid-2022, Russia’s invasion of Ukraine sent shockwaves through commodities, with gold spiking again above $2,000. The rally was short-lived, however, as aggressive interest rate hikes by the U.S. Federal Reserve pulled prices back.
Interest rates versus safe-haven demand
Throughout 2023 and 2024, gold prices moved in a tight band between $1,800 and $2,000 per ounce. On one hand, higher global interest rates dampened demand by raising the opportunity cost of holding a non-yielding asset like gold. On the other, persistent geopolitical tensions, from the Middle East to Eastern Europe, kept investors wary, ensuring a steady baseline of safe-haven flows.
A new cycle in 2025
So far in 2025, gold has continued to react strongly to expectations of U.S. monetary policy. Softer inflation data and signs of weakening labour markets have renewed hopes of rate cuts later this year, providing support for gold. Prices have recently been trading near $2,400 per ounce, pushing close to new record territory. Analysts suggest that if the Federal Reserve signals a decisive easing cycle, gold could test fresh highs, while prolonged policy uncertainty may trigger more volatility.
Outlook for investors
Looking ahead, gold’s trajectory will depend on the interplay of interest rates, inflation, and geopolitical stability. While equities and cryptocurrencies attract speculative capital, gold remains a cornerstone of risk management for institutional and retail investors alike. Its five-year journey underscores its dual role—as both a hedge in times of crisis and a barometer of global confidence.
Newshub Editorial, 12 September 2025
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