Gold has increased by more than 45% so far this year and after 1979 it is towards registering the biggest annual jump. Sona is performing its best in decades this year. In 2025, its prices are constantly touching record heights. Let us know what is the reason behind this increase in Bulians.
Why is this impartant
Sleep Then it is shining. This rally clearly shows that investors are deeply concerned about global financial systems and American politics and fear has increased about the future of the dollar.
See in statistics
$ 3,848/Os: Gold record high price by Monday
+45%: Gold prices increase from 1 January 2025
1979: Last time the price of gold increased so fast, that year, Iran’s revolution and oil crisis had up 126%.
Story Gold of Gold
Gold is touching the sky as investors are cautious about political quarrels over the possible shutdown of the US government, growing business tension and Federal Reserve policies. US President Donald Trump’s Federal Reserve attacks, new tariffs and policies of big expenses have increased uncertainty, leading people moving towards gold for safe investment.
This lead reminds the upheaval of the 1970s. At that time, inflation, oil crisis and political crisis forced gold prices to touch the sky. In 1971, Richard Nixon abolished the converting dollar into gold, ending the Bretton Woods system. Economist Yanis Varofacis is called a magic trick, which America The deficit allows to fund the deficit through global debt, which he called Global Minotor.
Gold prices saw a tremendous bounce in the end of 1970 (at the peak in 1979) and then declined in 1980. Today there is also the same contradiction in the increasing gold prices. When trust in the dollar is low, the price of gold increases but investors often return to the dollars at the time of fear. The prices of both have a different dignity, in which the strength of one often indicates the return of the other.
Geophysics also promotes it further. China and Russia are storing gold. Russia and China are 90% transactions in their business in local currency. Trump and Biden adopted Nixon’s path to protect major industries. Currently, the dollar remains a major currency. However, the rising price of gold reflects dissatisfaction whether this dominance can be maintained.
Big picture
Gold is not just a commodity. This is a sign of trust or mistrust in the value of money. Gold is unique due to its rarity, durability and limited supply. When politics weakens confidence in dollars, investors turn to gold. The question is whether gold will be just a hedge or its role in the new financial system will increase further?
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