Gold Hits Inflation Adjusted All-Time High as Investors Flock to Precious Metals

Gold prices in U.S. dollar terms have hit multiple all-time highs in 2025 in nominal terms.

This week, they surged to all-time highs adjusted for inflation, rising to a new record high of US $3610oz. This level officially surpasses the prior inflation adjusted high experienced in January 1980 (US $3504oz in current day terms).

The long-term chart which dates to 1970 below underscores golds historical rally in real terms.

Golds post-COVID bull market, fuelled by several key macro drivers, has seen inflation adjusted prices double since 2022. Central banks, particularly across Asia and the Middle East, continue to expand their reserves, with global net purchases of more than 4000 tonnes seen since 2021.

While some commentators will see gold hitting an all-time high in inflation adjusted terms as warning sign, the chart above also shows this bull market run may just be in its infancy.

In the last secular bull market run, gold essentially rallied 7x over a 4 year period, rising from close to $500oz to $3,500oz (in today’s dollars) between 1976 and 1980.

Gold has only doubled so far in this bull market run. It may no longer be ‘cheap’, but the big money may still be ahead of us.

Pod of Gold - Gold’s Relentless Run!

Earlier this week, my colleague Nicholas Frappell, Global Head Institutional Markets at ABC Refinery, recorded his latest ‘Pod of Gold’ episode.

He looked at the seemingly unstoppable bull market in precious metals that we are seeing unfold before our eyes, exploring in detail;

• The drivers pushing gold to fresh record highs.

• The role of weak US labour data and Fed policy expectations.

• Why ETF and Managed Money positioning matter right now.

• Central bank gold buying and its impact on demand.

• The potential scenarios that could actually stop this rally.

• Price targets including the much-discussed 3860 level.

• How the US dollar is influencing precious metals markets.

• The broader macro backdrop including tariff news, and risk assets.

Timestamps:

00:00 – Introduction

00:44 – What’s driving gold higher right now

04:12 – Question from listener: “Could anything stop this rally?”

08:19 – ETF flows vs Managed Money positioning

10:16 – Price targets: short-term, medium-term, and $3860

11:34 – Medium-term price target explained

12:22 – The role of the US dollar and Fed policy

15:15 – Key takeaways and closing thoughts

This is a must listen podcast for precious metal investors looking to navigate this market and maximise the wealth building potential it offers.

Jordan Eliseo
General Manager, ABC Bullion

Luke Tyler
Market and Business Analyst, ABC Bullion

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