Gold prices continued their upward trajectory, marking an eighth consecutive week of gains as of October 12, 2025, fueled by escalating geopolitical tensions and shifting expectations regarding U.S. monetary policy. The precious metal is poised to possibly reach new historical highs, bolstered by factors including trade disputes and political instability.
The rally gained momentum after U.S. President Donald Trump announced on Friday that a planned meeting with Chinese President Xi Jinping following events in South Korea was off the table, alongside consideration of considerable increases to tariffs on Chinese imports. This news triggered a sell-off in U.S. stock markets, with the S&P 500 closing down 2.7% and the Nasdaq falling 3.6% at the week’s end. investors are simultaneously monitoring potential government collapses in France, geopolitical risks in Japan, and the ongoing U.S. government shutdown-all contributing to gold’s safe-haven appeal.
Analysts anticipate further gains, projecting a potential surge in gold prices over the next two years, despite acknowledging the possibility of short-term corrections given the recent rapid ascent. Investors are also factoring in expectations that the U.S. Federal Reserve will implement 25-basis-point interest rate cuts in both October and December, following an initial rate reduction earlier in the year.
Current forecasts suggest a favorable outlook for 21-karat gold, with some estimates indicating a potential rise to 4500 dollars per ounce.The confluence of these factors-trade uncertainty, political risks, and anticipated monetary easing-is driving demand and supporting gold’s sustained climb.
