Markets

Gold prices soar past $4,000 amid global uncertainty; analysts warn of limited upside

Gold hits record $4,000 amid global jitters — Analysts warn the rally may cool off soon

October 8, 2025

Analysts say gold’s bull run may pause as prices approach fair-value zone

Gold has been the biggest buzzword in the investing world this year. With an eye-watering 50% rise in 2025 alone, the precious metal has crossed the $4,000 mark in the international market as investors rush to hedge against growing economic and geopolitical uncertainty.

This year’s spectacular rally builds on a 27% surge in 2024 and a 13% rise in 2023, underscoring gold’s three-year winning streak. Yet, despite the historic highs, investor appetite shows little sign of fading.

Analysts attribute the rally to a combination of factors — including record central bank purchases, weakness in the US dollar, steady ETF inflows, and a broader flight to safety amid escalating geopolitical tensions. Hopes that the US Federal Reserve will soon cut interest rates have further boosted demand, as a lower-rate environment makes non-yielding assets like gold more attractive.

However, experts are beginning to sound a note of caution. Analysts at DSP Mutual Fund said that while the gold bull run “seems far from over,” the margin of safety has significantly narrowed. “The market may pause for an extended period, and meaningful pullbacks could offer opportunities to add,” DSP noted in its report.

Gold prices are currently hovering near DSP’s fair-value zone of $3,166–$4,484, having already crossed the midpoint at $3,825.

As the metal’s remarkable rally continues, investors face a key question — whether gold’s golden run still has room to shine, or if a cooling-off phase is around the corner.

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