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Commentary: The Enduring Logic Behind Gold’s Record Highs

Published: Sep. 5, 2025  12:40 p.m.  GMT+8
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Photo: AI generated
Photo: AI generated

In the past two weeks, following a brief consolidation, gold prices have broken upward again. London spot gold has cumulatively risen nearly 7% to a historic high of $3,578 per ounce, while COMEX gold reached $3,640 per ounce. This article revisits the “long bull” logic for gold and its unique long-term allocation value. Against the backdrop of profound changes in the current global geopolitical logic and financial system, while gold prices may experience short-term fluctuations, the “turning point” is far from arriving, and its long-term performance remains promising.

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This is an AI-generated English rendering of original reporting or commentary published by Caixin Media. In the event of any discrepancies, the Chinese version shall prevail.
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What Happened When
2022:
Long-term trend in gold prices began detaching from real interest rate 'gravitational pull' due to central bank structural allocation demand and gold's safe-haven role.
2025:
Yields on long-term sovereign bonds in the UK, Japan, US, and France reached multi-year or record highs amid fiscal concerns.
2025:
Development of gold-backed stablecoins and World Gold Council's plan to launch digital gold discussed.
January 2025:
Donald Trump inaugurated as President.
Early August 2025:
Federal Reserve Governor Kugler resigned.
Early August 2025:
Trump appointed Miran as interim Fed governor. Miran proposed a Mar-a-Lago accord and advocated a long-term weak dollar.
August 25, 2025:
President Trump announced the dismissal of Fed Governor Cook.
August 2025:
Federal Reserve Chairman Jerome Powell signaled a September 2025 rate cut at the Jackson Hole symposium.
Late August to early September 2025:
Gold prices broke upward after consolidation; London spot gold reached a historic high of $3,578 per ounce, and COMEX gold hit $3,640 per ounce.
September 4, 2025:
Senate scheduled to hold a hearing on Miran's appointment; Miran expected to be confirmed as Fed governor.
September 2025:
Federal Reserve expected to restart its rate-cutting cycle.
AI generated, for reference only
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