Fri Dec 26 11:20:00 UTC 2025: Okay, here’s a summary of the text, followed by a rewrite as a news article:
Summary:
Gold is experiencing its best year since 1979, fueled by global uncertainty, geopolitical tensions, and central bank buying, particularly from China. Gold futures have soared almost 71% this year, and analysts predict further increases. This surge outperforms the S&P 500. Investors are turning to gold as a safe haven amidst inflation concerns, potential currency devaluation, and geopolitical instability. Other precious metals like silver, platinum, and palladium are also seeing significant gains. A weaker dollar and expectations of Federal Reserve rate cuts further support gold’s rise. Some central banks are decreasing reliance on American assets like US Treasury bonds.
News Article:
Gold Prices Soar to Levels Not Seen Since 1979 Amid Global Uncertainty
NEW YORK (CNN) — Gold is having a record breaking year, experiencing its best performance since 1979 as investors flock to the precious metal amidst a backdrop of global instability and economic uncertainty. Gold futures traded in New York have surged almost 71% this year, outpacing the S&P 500’s 18% gain, and are on track for their most significant annual increase in nearly five decades.
The surge in gold prices is being driven by a confluence of factors, mirroring conditions last seen during the Carter administration, when inflation soared, and the Middle East faced turmoil. Today, investors face tariffs distorting international trade, the ongoing war in Ukraine, and simmering tensions between Israel and Iran.
“Uncertainty remains a defining feature of the global economy,” said Joe Cavatoni, senior market strategist at the World Gold Council. “In this environment, gold has become increasingly appealing as a strategic diversifier and a source of stability.”
While gold traditionally lacks the income-generating appeal of bonds, recent Federal Reserve interest rate cuts have made the precious metal a more attractive investment alternative. Gold futures, which started the year around $2,640 a troy ounce, have already climbed above a record high $4,500 a troy ounce and JPMorgan Chase analysts predict prices could rise above $5,000 a troy ounce in 2026.
Central bank buying, particularly from China, is a significant factor boosting demand. China’s central bank is actively increasing its gold reserves to reduce its reliance on American assets like US Treasury bonds and the dollar, a trend that accelerated following the freezing of Russian assets in 2022.
“The current wave of central-bank buying is different precisely because it is rooted in geopolitics,” stated Ole Hansen, head of commodity strategy at Saxo Bank. “The freezing of sovereign reserves and the broader fragmentation of the global financial system have introduced a structural element to gold demand that is likely to persist for years.”
The rise in gold prices has also fueled gains in other precious metals. Silver futures have soared 146% this year, while platinum and palladium have gained almost 150% and 100%, respectively.
Analysts expect the trend to continue, with concerns about enormous government deficits and debt burdens also driving investors toward gold as a safe haven. “As investors have become more cognizant of these issues, they have been looking toward gold as a safe haven,” said Matt Maley, chief market strategist at Miller Tabak + Co.
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