In accordance with Odaily, Robin Brooks, senior economist at the Brookings Institution and former chief foreign exchange strategist at Goldman Sachs, stated that gold's record high indicates the so-called 'currency debasement trade' has resumed. Since 2025, the return on international spot gold has reached 68%, while silver also hit a record high, with a year-to-date gain approaching 140%. Brooks attributed the surge to Federal Reserve Chair Powell's dovish remarks at the Jackson Hole meeting on August 22 and a 25-basis-point rate cut on December 10. Traders are now anticipating further Fed rate cuts.
Gold Hits Record High as 'Currency Debasement Trade' Resumes in 2025
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Summary
Gold hit a record high in 2025 as the "currency debasement trade" regained momentum. Robin Brooks of Brookings noted that gold returned 68% year-to-date, with silver up nearly 140%. Traders point to Powell’s dovish comments at Jackson Hole and a 25-basis-point rate cut in December. On-chain data shows growing interest in altcoins to watch amid expectations of more Fed easing.
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