The price of gold broke its historical record again this month (October 2025), climbing above $4,300 USD per ounce. That’s an increase of roughly 60% since the start of the year, when gold traded near $2,650 USD. Those who follow me know I’m not surprised by this rise. The question now is whether gold will keep moving higher.
Analysts now believe that gold’s recent surge is fuelled less by trade policies and more by domestic fiscal instability in the United States, especially the ongoing federal government shutdown. The political gridlock has deepened concerns about fiscal credibility and economic resilience, pushing investors toward safer assets.
In mid-October 2025, gold prices soared past US$4,300 per ounce, hitting fresh record highs. The rally reflects a mix of shutdown anxiety, expectations of Federal Reserve rate cuts, and the renewed geopolitical unease weighing on global markets.
In an increasingly unpredictable world, precious metals provide a reliable way to diversify and protect investments. Let's examine the recent rise in gold prices and why expats will want to invest in gold.
Gold and interest rates have an inverse relationship in the short term. When interest rates are high, gold prices typically do not surge. Yet, between 2020 and 2025, gold defied expectations, climbing from $2,000 USD to a high above $4,300 USD per ounce this month.
Even more striking is that the Federal Reserve (Fed) will inevitably have to start cutting rates. If gold continues its steady climb even in a high-rate environment, a decline in interest income could accelerate the increase in gold prices even further.
We will likely witness developments where inflation remains persistent while interest rates decline. This combination could throw financial markets into turbulence, increasing the likelihood of stagflation. In this uncertainty, gold may surge even higher.
Central banks around the world have been increasing their gold reserves at the fastest pace in decades, signalling a major shift in how nations view monetary security. This renewed demand marks the highest level of central bank gold buying in more than fifty years and reflects growing caution about overreliance on fiat currencies and foreign reserves.
China has been one of the most active participants, steadily expanding its gold holdings as part of a broader effort to diversify away from the U.S. dollar and reduce exposure to U.S. Treasury bonds. Similar strategies have been observed in countries such as India, Turkey, Poland, and Russia, all seeking to strengthen the independence and resilience of their financial systems.
The United States, already the largest holder of gold in the world, has also made additional purchases in recent years. This continued accumulation highlights that even advanced economies recognize the importance of gold as a long-term store of value and a safeguard against economic uncertainty.
These purchases differ from private investment trends because central banks accumulate gold for long-term stability rather than short-term profit. Their consistent demand, even during price fluctuations, has helped establish a structural price floor for gold and made official buyers a stabilizing force in the market.
The sustained accumulation of gold by central banks continues to provide underlying support for the market and reinforces its role as a key reserve asset in a changing global economy.
The global landscape is being reshaped by persistent geopolitical tensions and mounting domestic instability in major economies. While trade disputes and tariff escalations remain relevant, analysts now see gold’s latest rally as being driven primarily by fiscal and political uncertainty in the United States. The ongoing federal government shutdown has amplified fears over fiscal credibility and economic resilience, prompting investors to seek refuge in safer assets.
At the same time, hopes for a swift resolution to the Russia–Ukraine conflict have faded. U.S. President Donald Trump recently acknowledged his failure to end the war, calling it “probably the most difficult” conflict of his diplomatic efforts. His admission underscores the entrenched nature of the crisis and the broader geopolitical fragmentation that continues to unsettle global markets.
Beyond military and political stalemates, the U.S. has also intensified its protectionist stance toward both China and traditional allies in Europe, Canada, and Japan. These tariff-driven trade frictions have disrupted global supply chains, heightened inflationary pressures, and undermined confidence in fiat-denominated assets.
Gold is rising for a reason. In a world of uncertainty, offshore gold is your hedge against inflation, dollar decline, and political chaos. Your Plan-B should start with real assets.
The surge in gold prices is not just a short-term market reaction but a reflection of fundamental changes in geopolitics and global order. Recent political tensions and trade wars may begin a new era.
For those crafting their offshore Plan-B, this situation should only confirm what smart investors have known for centuries: gold remains a tried-and-true vehicle for protecting your hard-earned wealth. Gold serves as a hedge against inflation, provides a safe haven against currency devaluation and is universally accepted as a store of value.
Investing in gold, especially through offshore options, should be a priority strategy to secure your financial future. If you haven’t built a Plan-B yet, now is the time to evaluate your options. There’s no better time to start than today.