Gold hit a major milestone last week eclipsing $3,000 an ounce for the first time.
Perhaps even more impressive was how fast gold pushed to that much-anticipated level.
So, can this gold bull run continue?
In this episode of the Money Metals' Midweek Memo podcast, host Mike Maharrey talks about it, highlighting several factors driving gold higher and explaining why he thinks this gold can keep pushing higher.
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There’s a first time for everything, and for the first time last week, we saw $3,000 gold!
Mike called it "a pretty significant milestone."
"But when you step back, you realize this is just one of the many bits of new ground gold has broken over the last 18 months or so."
Mike points out that since the end of 2023, gold has climbed to $3,000 from $2,064, a 45.3 percent increase. The yellow metal is up 14.3 percent in 2025 alone. Along the way, the price of gold hit new highs 40 times in 2024. This year, the yellow metal has already broken 14 records.
"It’s not just that gold has broken through the $3,000 resistance. It’s how quickly it happened. Gold's meteoric rise is unprecedented. It drove from $2,500 to $3,000 in just 210 days. To put that into historical context, gold has taken an average of 1,700 days to reach previous $500 milestones."
Mike says he expected more resistance at $3,000, and while the price did drop below that level on Friday, it regained $3,000 on Monday and has since held that level. It even topped $3,050 briefly on Wednesday.
Mike covers several factors he thinks are driving the rally.
The trade war is the most commonly cited event pushing gold higher. Mike notes that its not just the tariffs, but the regime uncertainty caused by President Trump's negotiating tactics. He also touches on the recent movement of gold from London and Asia to New York.
"While the trade war is in the spotlight, it is not the only factor driving gold higher."
Mike notes the sudden worries about a recession.
"Mainstream analysts tend to blame the trade war for the sudden recession worries, but the economy has been poised for a downturn for well over a year."
Mike points out the recent bankruptcy announcement by Forever 21 as an example of the rot in the undercarriage of the economy.
"Here’s the thing. Decades of easy money in the wake of the 2008 financial crisis created significant distortions and malinvestments in the economy, along with a massive debt bubble. The central bank was forced to take the easy money drug away due to price inflation. However, this economy is not built to operate in a normal interest-rate environment. This is why the markets are desperate for rate cuts...
"The markets are clamoring for deeper rate cuts hoping that it will save us from a recession. While more of the easy money drug might kick the can down the road for a while, it will also mean more inflation. And eventually, they will run out of road. We enjoyed a long easy money boom. Booms always come with a bust. And the bust is generally commensurate with the boom."
Mike also notes that a recession will increase inflationary pressure due to the inevitable easy money response by the central bank. This will add to the inflationary pressure the Fed still hasn't relieved.
"The February CPI data gave markets a glimmer of hope, but price inflation remains well above the Fed’s 2 percent target. It’s also important to note that any 'victory' over price inflation sets the stage for the central bank to create more inflation. Rate cuts encourage borrowing. In turn, this boosts the money supply. This is, by definition, inflation. One of the symptoms of this monetary inflation is price inflation. In other words, any victory over price inflation opens the door for the Fed to resume the very policy that gave us higher price inflation to begin with."
Mike notes that while there doesn’t seem to be a lot of mainstream worry about a resurgence of price inflation, savvy gold investors recognize the fundamentals and are behaving accordingly.
Central bank gold buying has supported gold through the entirety of its 18-month rally and that isn't likely to end. Central banks have increased gold reserves by over 1,000 tonnes for three straight years. This constant demand has underpinned this entire gold rally. To put it into perspective, central bank gold reserves increased by an average of just 473 tonnes annually between 2010 and 2021.
Mike cautions that we will likely see some profit-taking in the near term, noting that historically, gold has held above previous multiples of $500 for an average of nine days before pulling back and consolidating. But he also points out that these sell-offs have been short-lived.
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Mike emphasizes that it's not too late to get in on this bull run. Corrections and consolidations present buying opportunities. And he reminds listeners to not forget about silver, pointing out that it has rallied as well, pushing the gold-silver ratio below 90-1. However, silver still appears significantly underpriced compared to gold.
This leads to a call to action - call a Money Metals' precious metals specialist at 800-800-1865!
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About the Author
Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
