Gold Prices Jump Nearly $30/Ounce Today Amid High Inflation and Fed Policy Uncertainty

Gold just delivered a breakthrough surge of nearly $30 per ounce, closing at around $3,446 per ounce on August 29, 2025 – the highest level since mid-July. Is this a signal that gold is truly returning to its position as the go-to safe haven asset when global financial markets are in turmoil?

The answer lies in two key factors driving investors to flee from high-risk investments: mounting inflationary pressure and uncertainty surrounding the Federal Reserve's monetary policy decisions.

When Inflation Returns and the Fed Hesitates

U.S. inflation is forecast to rise around 3% this year, higher than previous projections. While the Fed has kept interest rates unchanged, warnings about "significant inflationary pressures emerging" from Fed officials are creating waves of concern across markets.

When currency loses value, investors typically seek assets that can preserve value over the long term. Gold, with its millennia-long history as humanity's "treasure vault," once again proves its irresistible appeal during times of uncertainty.

Minh, a private investor in Ho Chi Minh City, shares: "I bought gold early this year when I saw troubling signals from Fed policy. Now I see that decision was right, but I don't dare buy more at such high prices."

What Do the Numbers Tell Us?