Gold Prices Soar Past $4,400: Humphrey Yang Explains Why and How To Protect Your Portfolio

Core Viewpoint - Gold prices have surged significantly, reaching over $4,000 per ounce in October 2025, with projections estimating prices could hit $4,400 per ounce in 2026, indicating a strong demand for gold amidst economic uncertainties [1]. Group 1: Factors Influencing Gold Prices - Relationship to the US Dollar: There is an inverse relationship between gold prices and the U.S. dollar, where a rising dollar typically leads to falling gold prices, and vice versa [3]. - US Dollar Devaluation: Concerns regarding the Federal Reserve and monetary policy have led to the devaluation of the U.S. dollar, prompting international investors to consider gold as a risk hedge, which can further support gold prices [4]. - Inflation Concerns: The annual inflation rate was reported at 2.7% in September 2025, above the Federal Reserve's target, making gold an attractive option for those worried about currency value decline [5]. - Central Bank Policies: Foreign central banks are increasingly adding gold to their reserves instead of U.S. Treasuries, with China being a significant buyer in 2025, indicating a shift towards gold for diversification and security [7].