The price of Gold (XAUUSD) surged at the beginning of last week and continued its upward trend on Tuesday (23/12/2025). This sharp increase has propelled it to set a new all-time high, surpassing the previous record that was noted on October 20.
On Monday, Gold skyrocketed by nearly US$105 or 1,050 pips, reaching US$4,443.11 per troy ounce, and this morning it climbed further to US$4,469.85 per troy ounce. This precious metal is now nearing the next psychological level of US$4,500 per troy ounce.
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The rapid rise in Gold’s price occurred after a period of sideways movement the previous week, as economic data from the United States indicated signs of economic slowdown.
The US labor market showed signs of weakness, with unemployment rising to 4.6% in November, the highest since September 2021. Meanwhile, inflation growth (consumer price index/CPI) has significantly slowed down.
The core CPI, which excludes food and energy prices, saw its year-on-year growth decelerate to 2.6% in November. This figure represents the lowest level since March 2021, and it is edging closer to the Federal Reserve’s target of 2%.
The Federal Reserve relies on labor market data and inflation trends to guide its monetary policy decisions. The core inflation measure they focus on, based on personal consumption expenditures (PCE), has shown similar trends to the CPI.
As a result, market participants anticipate that the Federal Reserve may lower interest rates 2 to 3 times, which exceeds the forecast provided by Governor Jerome Powell, who suggested only one rate cut.
When the labor market weakens and inflation declines, it creates more room for the Federal Reserve to ease interest rates, which positively influences Gold.
Furthermore, positive sentiment towards Gold has been bolstered by escalating geopolitical tensions between the United States and Venezuela. Reports indicate that the US is monitoring vessel activity around Venezuela following the seizure of two oil tankers earlier this month. President Donald Trump has even emphasized that military conflict with Venezuela is not off the table, which enhances Gold’s appeal as a safe haven asset.
