Gold breaks its all-time record after 45 years

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Gold reached a new milestone this week in its dizzying three-year bull run, surpassing for the first time the inflation-adjusted high recorded in January 1980. The metal hit $3,674.27 an ounce on Tuesday and was holding near $3,635 on Thursday, consolidating more than 30 nominal records so far in 2025.

A new high after 45 years

The 1980 record, when gold traded at $850, would be equivalent to about $3,590 today after adjusting for inflation. With this benchmark surpassed, gold reinforces its historic role as a hedge against currency depreciation and geopolitical uncertainty. "Gold has played that role for hundreds of years," explained Robert Mullin of Marathon Resource Advisors.

Factors behind the rally

The rally is a response to anxiety about the US economy, marked by increased deficit spending, doubts about the Federal Reserve, and the Trump administration's economic policy. The fall of the dollar and the massive sell-off in Treasury bonds have accelerated the search for refuge in alternative assets.

So far in 2025, gold has accumulated a rise of nearly 40% in the third quarter, also supported by strong demand from central banks and global asset managers.

Differences with 1980

Unlike the parabolic rise of the late 1970s, followed by an abrupt collapse, the current rally shows less volatility. This is explained by a more liquid market and the entry of a more diverse investor base. Today, the value of gold in London vaults exceeds USD 1 trillion, and the metal has already displaced the euro as the second most important asset in international reserves.

Gold Outlook

Although analysts like Bloomberg Intelligence's Grant Sporre believe gold is "painfully expensive," they warn that its relative value against US stocks still makes it attractive. If stock markets show weakness, the metal's price could rise even further.

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Sources:

• Bloomberg
• Reuters