Gold Hits $3,600 as Investors Seek Safe Haven in Dollar Doubt

As of September 9, 2025, the price of gold has surged to over $3,600 per troy ounce, marking a new record high and reflecting significant momentum in the precious metal market [2]. This surge follows a year-long bull run, with gold rising approximately 38% from around $2,624 per ounce at the start of 2025 [2]. The upward trajectory has sparked renewed interest among investors, many of whom are questioning whether it is still viable to enter the gold market.

Goldman Sachs Group, Inc. (GS) has issued a forecast suggesting that gold prices could climb even higher in the coming years. In a recent analysis, the bank projected a price target of $3,700 per ounce by the end of 2025 and $4,000 per ounce by mid-2026 [1]. The bank’s more aggressive scenario estimates that if just 1% of the $57 trillion in privately owned U.S. Treasury market were reallocated into gold, the price could rise to nearly $5,000 per troy ounce [1]. This scenario, while extreme, underscores the potential for gold to serve as a safe haven asset if confidence in the U.S. dollar and government bonds weakens.

JPMorgan Chase & Co. (JPM) also released a report that aligns with the broader bullish sentiment. The firm predicts gold prices will average $3,675 per ounce in the fourth quarter of 2025 and rise further toward $4,000 by mid-2026 [1]. The firm attributes these expectations to the growing "Fed independence trade," where investors react to political pressures on the Federal Reserve, particularly from the Trump administration, which has raised concerns about the central bank’s autonomy. A loss of institutional trust in the Fed could lead to higher inflation and a diminished role for the dollar as a global reserve currency—scenarios that historically favor gold [1].

The current economic environment further supports gold’s rally. Recent data shows a weaker labor market than previously estimated, with job additions in August falling below expectations and revised figures for June indicating job losses [2]. This weak labor market, combined with steady inflation of 2.7% annually, has led the Federal Reserve to signal openness to rate cuts at its upcoming meeting. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors [2].

Gold’s role as a store of value and its low correlation with traditional equity markets make it a strategic addition to diversified portfolios [2]. Experts suggest allocating between 5% and 10% of a portfolio to gold, depending on risk tolerance. While the metal’s price volatility remains a risk, the current macroeconomic conditions and institutional forecasts indicate that gold is likely to continue gaining ground as a key component of risk-managed investment strategies.

Source: [1] Gold prices surge past $3600 per ounce. Is it too late to buy in now? (https://www.cbsnews.com/news/gold-prices-surge-past-3600-per-ounce-is-it-too-late-to-buy-in-now/) [2] Gold prices surge past $3600 per ounce. Is it too late to buy in now? (https://www.cbsnews.com/news/gold-prices-surge-past-3600-per-ounce-is-it-too-late-to-buy-in-now/)