Gold Hits $3,372 Per Ounce Driven by Inflation and Economic Uncertainty

Gold was trading at $3,372 per ounce at 9 a.m. Eastern Time on August 26, 2025, marking an $8 increase from the previous day at the same hour and a $848 gain compared to the price from one year ago [1]. This rise is part of a broader trend, as gold has appreciated more than 25% since the beginning of 2025, driven by persistent inflation and economic uncertainty [1].

The price of gold stood at $3,364 per ounce yesterday, reflecting a 0.24% decline on a daily basis. One month ago, the price was $3,339, down 0.98% compared to the current level. In contrast to this month’s slight decline, the year-over-year change is significant, with the price surging by 33.5% over the past 12 months [1].

Despite its recent strength, gold remains a less volatile asset compared to traditional equities. Historical data indicates that from 1971 to 2024, traditional stocks delivered an average annual return of 10.7%, while gold averaged 7.9%. In a strong economy, stocks tend to outperform gold both in the short and long term. However, gold is often viewed as a store of value during economic uncertainty and can serve as a reliable hedge against inflation [1].

For investors, gold offers several avenues for investment beyond physical ownership. Exchange-traded funds (ETFs) are a popular and convenient option, allowing for immediate liquidity and easier portfolio rebalancing. As financial advisor James Taska notes, ETFs make it easier to adjust a client’s gold allocation compared to physical bullion [1]. Gold bars, coins, and jewelry remain traditional forms of investment, while gold futures and funds offer more specialized and speculative approaches.

The spot price of gold, which is the current rate for immediate trades, is a critical metric for tracking demand and market trends. A higher spot price indicates stronger demand and is often used as a barometer for investor sentiment. When the price for future delivery is above the spot price, it is referred to as contango, a common occurrence in commodities with storage costs [1].

Gold’s appeal as an investment also lies in its price spread, the difference between the buying and selling price. A narrower spread suggests a more liquid market, which is typically a sign of high demand and strong investor interest. Investors should, however, be prepared for the inherent volatility in gold markets and consider it as part of a diversified portfolio.

Alongside gold, other precious metals like silver, platinum, and palladium were also noted on August 26, 2025. Silver was priced at $38 per ounce, platinum at $1,342, and palladium at $1,089 [1]. While these metals can add diversification to a portfolio, they tend to be more volatile than gold, especially silver, which is more responsive to industrial demand and economic trends.

In conclusion, with the U.S. economy continuing to face inflationary pressures and market uncertainties, gold remains a strategic option for investors seeking to hedge against volatility and preserve capital. Whether through physical bullion, ETFs, or gold IRAs, the accessibility of gold as an investment continues to grow, offering both short- and long-term benefits to a well-diversified portfolio [1].

Source: [1] Current price of gold as of August 26, 2025. (https://fortune.com/article/current-price-of-gold-08-26-2025/)