The SCO Forum in China caused a rise in the price of gold in the world
4 September 2025 12:57
Global gold prices continue to rise, and one of the key events that influenced this process was the recent Shanghai Cooperation Organization (SCO) forum in China. More about this in the commentary
Gold updates records
The price of gold continues to rise and only slightly falls short of the next psychologically important mark of $4,000. Gold has risen by more than 34% since the beginning of the year. Demand from central banks and investors has strengthened its position as a safe-haven asset.
On September 2, spot gold hit a new high of $3,527.5 per ounce. Experts predict a range of $3,600-3,900 in the short term and do not rule out reaching $4,000 in 2026 if economic and geopolitical uncertainty persists.
The average price forecast for 2025 increased from January to July – from $2,756 to $3,220 per ounce, according to Reuters polls.
Why gold is rising in price
Economic expert Andriy Novak in a commentary
According to him, the current situation has complex reasons, including the war in Ukraine, new US trade restrictions and global financial instability.
“The rise in gold prices on the global market has several reasons. The first one is that in times of crisis related to global processes, the financial sector always moves in favor of gold as a protective asset. What is happening now, since 2022, the war that Russia has unleashed against Ukraine, has not only a local but also a global impact on global processes,” Novak emphasized.
According to him, international sanctions imposed by Europe, the United States and other civilized countries have a significant impact on financial and trade flows in the world, which pushes investors to look for more reliable assets.
“That is, force majeure circumstances, such as war, always tend to make capital run to gold in the financial world. This is the first reason,” he added.
Another factor is the policy of the new US administration, which imposes tariffs and trade restrictions, often changing their terms.
“The second reason is that the tariff trade wars that the new US administration has started to introduce almost from the beginning of the year have also had a serious impact on many currencies, and also encourage capital to move towards protection due to uncertainty. This is because the U.S. administration imposes the same tariffs and trade restrictions, then postpones them for 30 days, then for 90 days,” the economist explained.
The key catalyst for the recent fluctuations, Novak said, is the formation of new global economic axes, particularly around China.
“The third reason is the general financial instability, which is provoked, among other things, by the war, trade wars, and the reformatting of what is called the global axes. In particular, the last SCO forum outlined that another global axis of influence is actually being formed around China,” he said.
Gold as an investment
According to the expert, in the face of such uncertainty, investors traditionally choose gold as the most reliable reserve asset.
“All of these are processes that make capital think about where to invest, but since capital cannot stand still, there is a tendency that many people prefer the most reliable reserve asset, which is gold, in this uncertain period,” Novak summarized.
Thus, the rise in gold prices is not an accidental phenomenon, but the result of a combination of global factors: Russia’s war against Ukraine, the West’s sanctions policy, US tariff conflicts and the formation of new economic centers of influence around China. According to Andriy Novak, in times of such uncertainty, investors traditionally choose gold as the safest instrument for preserving capital.
