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Gold has made every other asset on earth its dog throughout this year, rallying too hard that it now takes 116 hours of minimum wage work to buy one ounce of the precious metal in America, the highest ratio in literally over a century, according to data from Bloomberg.

That means a worker earning the federal minimum wage would need to work nearly three full weeks to afford a single ounce. The gold price closed around $4,225 per ounce at press time, while average hourly earnings stood at $36.50 in August, leaving income growth far behind.

The ratio has doubled in only 18 months, smashing previous all-time highs of 80 hours seen during the 1930s, 1980, and 2011. At the start of this millennium, the same ounce cost less than 20 hours of labor, a reminder of how far this metal has outrun real wages.

Gold’s rally has accelerated as investors pile in, betting on rate cuts from the Federal Reserve and global counterparts, as well as looking for safety amid growing geopolitical tension.

The metal has surged by 64% so far this year, helped by central bank buying, outflows from the U.S. dollar, and strong inflows into exchange-traded funds tied to gold.

Markets are now betting on a 25-basis-point cut at the October meeting and another in December, fueling even more optimism among traders who see the metal climbing beyond $4,400 in the coming years.

Gold drops after record high above $4,300 amid Trump’s tariff remarks

After a week of euphoria, gold prices slipped on Friday, retreating 2.6% to $4,211.48 per ounce bymidday, after hitting an all-time high of $4,378.69 earlier in the session.

US gold futures for December delivery also dipped 2.1% to $4,213.30, while the dollar index rose 0.1%, making bullion more expensive for overseas buyers. President Donald Trump told reporters that a “full-scale” tariff on China would be unsustainable, cooling some of the speculation that had driven gold higher through the week.

“I think Trump’s more conciliatory tone since the initial announcement of 100% tariffs has taken a little heat out of the precious trade,” said Tai Wong, an independent metals trader in New York.

Trump confirmed that he would meet with his Chinese counterpart, a decision that slightly eased market jitters over the escalating trade conflict. Even with the pullback, gold was on pace for a 4.8% weekly gain, its biggest since September 2008, when the collapse of Lehman Brothers sent investors scrambling for safety.

Suki Cooper, head of commodities research at Standard Chartered Bank, said her team expects gold to average $4,488 in 2026, adding that “broader structural factors” could push prices even higher. HSBC raised its 2025 forecast by $100 to $3,455 per ounce, projecting a potential climb to $5,000 by 2026.

Physical demand in Asia also stayed solid despite record prices, with Indian premiums rising to a decade-high ahead of local festivals. Meanwhile, silver fell 5.6% to $51.20, after touching $54.47, while platinum slid 6.1% to $1,607.85 and palladium lost 7.9% to $1,485.50.

Speculative excess grows as gold enters its third breakout in 50 years

This is the third breakout for gold in five decades, following the 1979–1980 and 2010–2011 booms, both of which ended in brutal crashes. In those eras, investors feared the Federal Reserve would allow inflation to destroy the dollar.

During the 1970s, the Fed was seen as bowing to political pressure from President Richard Nixon, while after the 2008 crisis, many worried that massive bond purchases would debase the currency. Both fears proved wrong. In the early 1980s, the Fed’s aggressive tightening halved gold’s value in two years. It took over 25 years for the metal to reclaim its 1980 peak, and only this year did it surpass that inflation-adjusted level.

After 2011, gold tumbled for five years before rebounding in 2020, yet it was still cheaper as recently as two years ago. Now, the surge looks eerily similar to past speculative frenzies. While investors argue “this time is different,” the pattern of rapid gains and euphoric buying hasn’t changed.

The push for alternatives to the dollar has intensified since the freezing of Russian reserves after the Ukraine invasion, driving central banks across developing nations to boost gold holdings over fears that Western assets might be vulnerable in a crisis.

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