Gold tops 1980 inflation-adjusted peak

Gold bars

The spot price of gold leapt to a new record high this week, surpassing the inflation-adjusted peak set more than 45 years ago, fueled by mounting concerns over the trajectory of the US economy.

Gold spot price eclipsed its inflation-adjusted peak set on Jan. 21, 1980, when prices topped out at $850, which equates to about $3,590 in today's dollars, Bloomberg reported.

The precious metal has gained nearly 40% since the start of 2025, supported by US President Donald Trump’s policies, which include tax cuts, expansion of the global trade war, and efforts to exert greater influence over the Federal Reserve.

A weaker dollar and declining long-term Treasury yields — driven by current administration policies — have also reduced the appeal of US assets, boosting demand for gold.

Analysts cited by Bloomberg noted that the current rally is more stable than the sharp spike seen in 1980, thanks to deeper markets and a broader investor base.