Gold Price Hits $3,800, as It Barrels Toward $4,000

By Rob Bates | September 29, 2025

The price of gold reached yet another benchmark on Sept. 25—$3,800—the third milestone it’s crossed in less than a month.

At press time on Sept. 29, gold was trading at $3,829 an ounce.

While gold has had an incredible 2025—rising nearly 43% over the course of the year—it’s been particularly strong this month. It surpassed $3,700 per ounce for the first time on Sept. 16—a week after it first hit $3,600.

Some analysts now believe $4,000 gold is inevitable, with forecasters from Deutsche Bank predicting the yellow metal will reach that milestone by the end of this year.

Joseph Cavatoni, market strategist for the World Gold Council, tells JCK that gold continues to benefit from an uncertain economic outlook and its traditional role as a “safe haven.”

“Geopolitical risks are a factor, but also economic fundamental risks, including the future of the dollar and the weakness of dollar-based assets,” Cavatoni says. “Market uncertainty is driving a lot of the diversification for Western investors away from risk assets. You have Western investors and central banks saying, ‘I’m losing diversification benefits with bonds in my portfolio, I might as well as look for something that has the right kind of diversification benefits.’

“People are looking for alternatives, but also alternative diversifiers, and that’s where gold is fitting in nicely,” he adds.

Rodney Sullivan, executive director of the Mayo Center for Asset Management at the University of Virginia’s Darden School of Business, told The Darden Report that gold now accounts for a larger share of central bank reserves than U.S. Treasury bonds and that the metal is now the second-largest global reserve asset, after the U.S. dollar.

Sullivan pointed to four factors driving gold’s rally: “President Donald Trump’s attempts to reorder America’s relationships with its major trading partners have rattled governments”; “Trump’s pressure on the Federal Reserve to lower interest rates has compromised Fed independence” and raised fears of inflation; “China’s housing bubble has been bursting over the past few years, leading to an adverse wealth effect on Chinese savers, who have been buying gold as an alternative safe-haven asset”; and “the rising standard of living in India has increased wealth, further boosting demand for the precious metal.”

(Photo: Getty Images)