Yellow Fever: Gold Price Hits $4,000 an Ounce

By Rob Bates | October 07, 2025

If the price of gold beginning with a 3 unnerved you, just think how you’ll feel when it starts with a 4.

But jewelers might have to get used to it: Gold hit $4,000 an ounce today, the second major milestone it’s crossed this year.

That’s the latest benchmark in an incredible run for bullion, which first hit $3,000 an ounce in March, and crossed $3,800 less than two weeks ago.

The yellow metal’s price has jumped more than 50% in 2025—topping its record-setting rallies during the pandemic and 2008 global financial crisis. Only 1979 was better for gold; that year, its price jumped over 100%.

At press time, the spot price was $3,985 an ounce.

Analysts said a wide range of factors is contributing to gold’s ongoing surge, including the U.S. government shutdown, mixed economic indicators, and the expectation that the Federal Reserve will again lower interest rates.

On Kitco.com, Stephen Innes, managing partner at SPI Asset Management, called the metal’s gains “historic and unnerving,” and said they stem from “central bank accumulation, capital flight from fiat currencies, and geopolitical hedging that reeks of systemic mistrust.”

He added, “This isn’t just about traders chasing momentum. It’s about central banks, sovereign wealth funds, and long-horizon investors quietly shifting their compass toward hard collateral.”

Analysts at State Street Investment Management told The New York Times that “persistent labor market weakness raises the risk of a recession or stagflation, supporting gold allocations.”

Goldman Sachs said this week that it sees gold’s rally continuing, as the bank raised its December 2026 price target to $4,900 an ounce.

Bank of America’s precious metals desk was more cautious, telling Kitco that gold has risen so fast it could face a correction in the fourth quarter.

(Photo: Getty Images)