Gold prices soar as investors seek safety
By Praisebell Rosemond Larbi
Gold prices continued their powerful ascent on 12 September 2025, rising 0.29 per cent to USD3,642.37 per ounce, extending a rally that has gripped global markets in recent weeks.
The precious metal has now gained 8.52 per cent over the past month and a remarkable 41.26 per cent year-on-year, underscoring its status as a preferred hedge in turbulent times.
The latest surge follows gold’s all-time high of USD3,675.22 earlier in September, reflecting robust investor demand amid shifting monetary policy expectations and heightened geopolitical risk.
Fed Policy Signals Boost Demand
Investor sentiment has been buoyed by growing anticipation of looser United States monetary policy.
Recent US data showed stable annual inflation and a surprise decline in producer prices, strengthening the case for a rate cut.
Adding to the pressure, jobless claims climbed to a four-year high, signalling a softer labour market.
Markets are now pricing in a 25-basis-point cut at the upcoming Federal Reserve meeting, with some traders even speculating on a larger adjustment.
Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors seeking to preserve wealth.
Geopolitical Tensions Fuel Safe-Haven Buying
Beyond monetary policy, geopolitical developments are amplifying gold’s safe-haven appeal.
Reports indicate that the United States is urging G7 allies to impose higher tariffs on India and China over their purchases of Russian crude.
Meanwhile, conflict in the Middle East continues to escalate, and Poland has reported intercepting Russian drones over western Ukraine, heightening concerns about regional stability and potential spillover effects.
Outlook: Momentum Remains Strong
Analysts say gold’s trajectory will depend on the Federal Reserve’s policy stance and the evolution of global conflicts.
However, with persistent uncertainty from currency market volatility to geopolitical flashpoints, investors are likely to keep flocking to gold as a store of value.
If the Fed delivers a deeper rate cut or if geopolitical tensions intensify, some market watchers believe the metal could challenge or even exceed its recent record high of USD3,675.22, reinforcing gold’s role as a critical hedge against economic and political instability.
