Gold’s 2025 Rally: Energy Lens
Gold was one of 2025’s strongest performers, rising roughly 60–65% and closing the year above $4,300 an ounce.
The last time gold had a stronger year was when Jimmy Carter was president in 1979, amid a global energy and inflation crisis, when prices rose from approximately $230 per ounce to around $500-512 by year end, a gain of over 120%.
Drivers of the 2025 surge included market expectations of Federal Reserve rate cuts, a weaker US dollar, and heightened geopolitical uncertainty, all of which increased demand for safe-haven assets.
Why does this matter for energy? Gold’s strength can signal expectations for lower real interest rates, which can reduce financing costs for large-scale projects. If rate cuts occur, developers could see improved economics for solar, wind, and storage buildouts.