Gold prices climbed to $2,530 per ounce in late December 2025, marking a new record high as investors flock to the metal amid escalating global tensions and persistent inflation concerns. The rally reflects a resurgence of the 'great debasement trade,' where capital shifts into hard assets amid fears of currency devaluation.
- Gold reached $2,530 per ounce on December 21, 2025, a record high.
- Gold has gained 22% year-to-date and 18% over the past 12 months.
- SPDR Gold Shares (GLD) saw $4.2 billion in net inflows during November–December 2025.
- Global central bank gold reserves increased by 1,150 tonnes in 2025.
- Silver hit $34.80 per ounce, reflecting broad precious metals strength.
- The 'great debasement trade' is re-emerging amid inflation and geopolitical risks.
Gold hit a fresh all-time high of $2,530 per ounce on December 21, 2025, driven by a confluence of geopolitical volatility and renewed inflation anxiety. The surge marks a 22% increase year-to-date and underscores growing investor demand for non-sovereign stores of value. The price spike comes amid heightened tensions in the Middle East and Eastern Europe, with military escalations and supply chain disruptions amplifying risk perceptions. The renewed strength in gold is being attributed to the re-emergence of the 'great debasement trade,' a long-term market dynamic in which investors anticipate erosion in the purchasing power of fiat currencies due to central bank monetary expansion. This framework gained traction during periods of high inflation and fiscal stimulus, most notably in 2021–2022, and has now resurged as inflation remains above central bank targets in major economies despite aggressive rate hikes. Spot gold has gained 18% over the past 12 months, outpacing both U.S. Treasury yields and equity markets. Meanwhile, the gold-backed SPDR Gold Shares ETF (GLD) saw net inflows of $4.2 billion in November and December 2025, the highest monthly flows since 2021. Silver also advanced, reaching $34.80 per ounce, signaling broader precious metals momentum. Market participants, including institutional asset managers and sovereign wealth funds, are adjusting portfolios to reflect the shift. Analysts note that gold's role as a geopolitical hedge and inflation protector has become increasingly relevant, especially as real yields remain negative across key benchmark bonds. The rally has also prompted central banks to increase gold reserves, with global holdings rising by 1,150 tonnes in 2025, the highest annual volume since 2010.