Economy in Turkey: Gold’s 140% Rally in Just Three Years
A Historic Peak for Gold
Gold prices entered October at an all-time high, continuing a remarkable rally. Just three years ago in October 2022, an ounce of gold traded at 1,622 dollars. This week, it climbed to the brink of 3,900 dollars, with investors now watching closely for a possible test of the 4,000 dollar mark. The combination of economic uncertainty, political tensions, and strong demand from central banks has fueled this surge.
Back in 2022, the U.S. dollar was at its strongest levels in decades, the Federal Reserve was aggressively raising interest rates, and institutional investors were offloading billions of dollars in gold ETFs. Since then, market dynamics have completely shifted in gold’s favor, turning it into one of the most sought-after safe-haven assets.
What Sparked the Rally
The turning point came in late 2022 when the Federal Reserve hinted at slowing its rate hikes. A weaker dollar gave gold new momentum. At the same time, the freezing of Russian reserves pushed many countries to diversify their holdings away from the dollar, accelerating central bank demand for gold. By 2023, official sector purchases had surged to over 1,000 tons annually, providing strong support for prices.
In 2023, the collapse of Silicon Valley Bank in the U.S. and the turmoil at Credit Suisse in Europe triggered another rush to safety, giving gold yet another boost. With the Fed eventually pivoting toward rate cuts in 2024, real yields declined and gold’s upward momentum intensified. Demand patterns also shifted, led by China and other BRICS nations significantly expanding their gold reserves. By the summer of 2025, China’s holdings hit a historic record above 74 million ounces.
Meanwhile, supply has struggled to keep pace. Global production rose just 3% in the first half of 2025, far below demand growth. While higher prices boosted mining profits, bringing new projects online will take time, leaving the market structurally tight.
The Road Ahead
Short-term market attention is fixed on Washington, where political gridlock over government funding has fueled uncertainty. Investors are closely watching the duration of the shutdown and the Federal Reserve’s upcoming policy signals. In the medium term, the 4,000 dollar milestone has become the key psychological threshold. Analysts believe profit-taking could emerge once that level is reached, but structural drivers still point to strength ahead.
Lower real interest rates, persistent central bank demand, geopolitical instability, and limited supply growth are all expected to sustain gold’s bull market. Even if volatility continues, most experts agree that gold now rests on a much firmer foundation than it did just three years ago.
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