Gold is on a record-breaking spree in 2025. Since the beginning of 2025, the price of gold has been setting new all-time highs, and is up by 23% so far this year. Over the last 1-year, gold has gained 50%.

What is more interesting is that the price of gold has jumped 100% in less than 3 years. On October 10, 2022, the price of gold per ounce was $1,704, which has since risen to $3,470 as of April 22, doubling in less than two years and six months.

The previous rally in gold of this magnitude was witnessed in 2020 but was short-lived. Incidentally, on April 22, 2020, gold was trading at $1,700.

A big surge in Gold price was also seen from September 2018 to September 2020, when the price jumped from $1,200 to $2,000, but did not double in those two years.

In India, the spot gold rate today is Rs 99,000 per ten gram, up by 100% from Rs 50,000 last seen in July 2022.

On the Multi Commodity Exchange (MCX), the October contract surpassed the Rs 1 lakh barrier for the first time, rising by Rs 1,666 or 1.69% to a new high of Rs 1,00,500 per 10 grams on the exchange.

The MCX spot price on Tuesday, April 22 is Rs 98,874 with an intraday high of Rs 99,358.

Also Read: Gold Price Prediction: Gold expected to post 71% return in 2025

Gold is finding enough reasons to keep its trajectory upwards. The most recent concern is about US President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell, which has dampened risk sentiment and driven investors to safe-haven bullion.

Colin Shah, MD, Kama Jewelry says, “The new all-time-high attained by the yellow metal is primarily influenced by the rising tensions between President Trump and US Fed Chair Jerome Powell regarding the Fed rate cut.”

Before that, a series of factors have led gold prices to keep increasing over the last 2-3 years. The reasons for gold being the only asset class where investors wish to safely deposit their money are numerous and include geopolitical worries, trade disputes sparked by Trump’s tariffs, the dollar’s decline in value, and a sell-off in US Treasuries. Gold is viewed as a safe-haven asset amid economic uncertainties.

The recent geopolitical situation has led central banks to buy gold in huge quantities as well.

China has recently shown itself to be a significant buyer of gold. Gold prices have remained high due to China’s growing gold stockpiles. China’s overall reserves rose 2.3% to US$3.5 trillion between January and March 2025. China reported buying 12.8 tons of gold in the first quarter of 2025.

Although gold has run up a lot, the higher demand for gold, as reflected in its rising price, may continue in the short term. “While the gold price is on an upward trajectory, the fall in USD will make gold affordable in other currencies, keeping the demand-price dynamics balanced. As the global economic development unfurls, we project the gold price to breach the USD 3,600/Oz in the international market during FY26,” says Shah.

All eyes will be on the Trump-Powell disagreement and the US-China trade war, which will determine the future direction of gold.