The price of gold has reached record highs in the past year with 2025 experiencing the biggest rally that gold has seen in decades. In fact, the last time the price of gold has rallied up this much was in 1979, when similar macroeconomic factors were at play, which included high inflation and economic uncertainty. When global markets seem unstable and the dollar shows trends of weakness globally, investors seek to move resources into more reliable assets such as gold. This move is not only driven by individual investors, but also institutional ones with central banks around the globe and certain gold-backed ETFs driving the price up with massive purchases of gold in a short timeframe.
The price of gold usually has an inverse relationship with the U.S. dollar, so when the value of the dollar decreases in the global market, the price of gold increases. Another influence to the increased demand of gold is the expectation of reduced interest rates as rate cuts by the U.S. Federal Reserve will mean an even weaker U.S. dollar, making gold cheaper for foreign buyers. The highest price for gold in 2025 was $4,534.16 per ounce in December up from the lowest price of $2,638.24 per ounce in January.
A high amount of volatility has hit global markets across stocks, cryptocurrency, and ETFs driven by tariff policies and trade tensions making gold reserves an attractive way to hedge against risk and inflation. While the market is showing some volatility with gold prices by day and certainly by the hour, overall the trend is decisively bullish with strong structural support showcasing gains of over 65% in 2025. This trend is not going away in 2026 either, so expect the price of gold to continue in this upward trajectory, but not as fast or as much as last year. Analysts forecast the price of gold to potentially hit highs of around $5,000 per ounce by the end of 2026!
While the demand for gold continues to be high, there may be some questions as to whether the supply could also be influencing the increased price of gold. According to the World Gold Council, gold mine production increased 2% from Q3 of 2024 to Q3 of 2025, so there isn’t a reduced supply of gold that’s driving the price up. Supply however is modest due to limitations of ore grades containing lower concentrations of gold causing miners to work harder to extract gold. Other factors to mine production include long lead times of up to 10 years to open a new mine due to permitting, environmental challenges and significant investment. There is also more recycling of gold taking place with a growth of 6% from Q3 of 2024 to Q3 of 2025.
22k gold Fulani earrings by Fulaba
The price of gold won’t be going down anytime soon. At Fulaba, we’re proud to source gold from West Africa where our jewelry is handcrafted. We’re the only place where you can get 22k gold Fulani earrings, which weigh in at about 25 grams, representing African High Culture at its finest. For centuries, Fulani women wore these earrings as a sign of wealth and nobility and as a means to preserve the world’s most precious asset – gold for future generations. The price of gold today signals that it still holds true.
Sources:
Sarkar, Inshani. “Explainer: Why gold prices keep fluctuating, and why investors shouldn’t panic.” South China Morning Post, 31 December 2025.<https://www.scmp.com/magazines/style/luxury/luxury-news/article/3338240/explainer-why-gold-prices-keep-fluctuating-and-why-investors-shouldnt-panic>.
Niedens, Lyle. “Gold Prices Soared This Year. Will 2026 Bring More Record Highs?” Investopedia, 30 December 2025. <https://www.investopedia.com/gold-prices-record-highs-2026-outlook-11871125>.
Metals Focus, ICE Benchmark Administration. “Gold Demand Trends: Q3 2025.” World Gold Council, 30 October 2025. <https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q3-2025>.
