The bull run in gold that began almost three years ago continues. The price of gold has surpassed the previous record high set in April 2022 to reach a new all-time high today, September 2.
Gold price touched an intra-day high of $3,508.79 on September 2. The previous high was $3,500, created on April 22, 2025.
Gold has risen more than $1,900 from its three-year low of $1575 to trade at almost $3,500 today. In just three years, the price of gold has more than doubled, rising 122%, or a startling 30% CAGR.
Gold Bull Run
Gold turned bullish in October 2022 and despite a lull phase for a few months – April to October 2023 – it had an upward trending trajectory.
Over the last 12 months, gold has been up over 40% while so far in 2025, the gold price has gained 33%. On an annualized basis, gold returns over 10 years have been about 12% or 211% on an absolute basis.
But what could be the top reasons for the gold bull run?
1. Geo-Politics
Back in 2022, the geopolitical environment was on the boil. Russia’s 2022 invasion of Ukraine, the escalating confrontation between China and Taiwan, and Israel and Hamas, all led to fear and uncertainty in the financial system. Gold works best amidst fear as investors find it to be the safest haven.
2. Central Banks
The geopolitics also led global central banks to buy more gold, increasing demand and driving prices upward. Against an average purchase of 500 tonnes, central banks bought 1,082 tonnes in 2022, followed by another 1,037 tonnes in 2023. In 2024, central banks bought a record 1,180 tonnes of gold, up from 1,082 tonnes in 2022.
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The next big impetus to gold prices came once central banks started the physical movement of gold.
Several Central banks were seen moving gold from vaults like the Bank of England back to their domestic reserves. This trend involved countries such as India and the United States.
3. Trump Tariffs
When Trump first announced tariffs in early 2025, gold was trading at around $2,900. The imminent trade war has kept gold prices trending higher so far this year.
Uncertainties in trade among countries are expected to sustain demand for gold as a safe-haven asset. Should these uncertainties persist and economic growth decline, the US Federal Reserve might be compelled to lower interest rates, consequently weakening the US dollar and potentially bolstering gold prices.
In the next FOMC meeting to be held on September 16-17, the US Fed is likely to cut rates for the first time in 2025, driven by concerns over a sluggish job market, despite inflation not yet fully controlled.
Finally, with India, Russia, and China banding together to form a New World Order intended to confront the United States, gold appears to have regained popularity.
Gold price today in India is Rs 1,05,350 and Dubai gold price is 96,570.80 for 22K.
