Gold Heads Toward a Historic Year as Prices Surge Nearly 60%

Abu Dhabi, United Arab Emirates – December 9, 2025 – Gold is set to close 2025 as one of the best-performing assets globally, rising almost 60% year-to-date—its strongest annual performance in more than 45 years—according to Farhan Badami, Market Analyst at eToro.

Although prices have eased slightly from the record highs reached in October, gold remains on firm footing as markets head into the Federal Reserve’s final meeting of the year. “Markets remain convinced that a December rate cut is coming, and the backdrop still supports that view,” said Badami.

He added that while inflation has been volatile, it has remained largely contained, and recent tariff policies have not reignited the kind of price pressures that would force the Fed to adopt a more aggressive stance. The ongoing US government shutdown has added further complexity, with policymakers forced to operate without a full flow of economic data. Still, markets appear confident, with the S&P 500 climbing around 5% since its November low, reflecting expectations that a rate cut is already priced in.

Badami noted that Federal Reserve Chair Jerome Powell faces a delicate communications challenge at this week’s meeting. “He needs to strike a balance between confidence that inflation continues to move in the right direction and reassurance that the Fed is not cutting because it fears a sharper downturn,” he said.

Throughout 2025, gold has thrived against a backdrop of safe-haven demand, persistent geopolitical tensions, and substantial central bank buying. ETF inflows have reached record highs, underscoring broad-based investor interest ranging from large institutions to younger retail investors.

Looking toward 2026, Badami believes the key question is not whether gold will maintain its safe-haven appeal, but how high prices could climb if uncertainty persists. “Central banks look set to keep accumulating bullion as they hedge against currency and inflation risks. That steady official demand remains a strong anchor for prices, and USD $5,000 is not off the table,” he said.

The macro forces that propelled gold to all-time highs in 2025—geopolitical instability, inflation pressures, and shifting US fiscal dynamics—show little sign of easing, particularly with President Donald Trump’s administration contributing to global uncertainty. This environment, Badami concluded, “sets the stage for another year in which investors continue to seek comfort, stability, and protection in the world’s oldest safe haven.”

About eToro

eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.

Disclaimers:

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Other fees apply. Terms and Conditions apply.

eToro is a group of companies that are authorised and regulated in their respective jurisdictions. The regulatory authorities overseeing eToro include:

• The Financial Conduct Authority (FCA) in the UK
• The Cyprus Securities and Exchange Commission (CySEC) in Cyprus
• The Australian Securities and Investments Commission (ASIC) in Australia
• The Financial Services Authority (FSA) in the Seychelles
• The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE
• The Monetary Authority of Singapore (MAS) in Singapore

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.

Cryptoassets are complex and carry a high risk of volatility and loss. Trading or investing in cryptoassets may not be suitable for all investors.

Regulation and License numbers

eToro back in stock rewards are provided by eToro (ME) Limited.

Middle East

eToro (ME) Limited, is licensed and regulated by the Abu Dhabi Global Market (“ADGM”)’s Financial Services Regulatory Authority (“FSRA“) as an Authorised Person to conduct the Regulated Activities of (a) Dealing in Investments as Principal (Matched), (b) Arranging Deals in Investments, (c) Providing Custody, (d) Arranging Custody and (e) Managing Assets (under Financial Services Permission Number 220073) under the Financial Services and Market Regulations 2015 (“FSMR”). Registered Office and its principal place of business: Office 26 and 27, 25th floor, Al Sila Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates.