Gold Tops Inflation-Adjusted Peak From the 1980s as Stagflation Risks Mount

9/11/25

Gold prices extended their extraordinary gains, with bullion prices surpassing their inflation-adjusted record set more than 4 decades ago.

Spot gold prices rose 0.1% on the session to $3,656.40 an ounce, topping the inflation-adjusted record of $3,498.77 an ounce established in 1980.

The gains followed another set of economic data suggesting mounting stagflation risks in the world’s biggest economy. Weekly jobless claims figures were at the highest levels in four years, according to the Labor Department, while headline inflation quickened to 2.9%, the highest level of the year.

Interest-rate traders are betting that the Federal Reserve will focus more firmly on the labor market weakening, and have penciled in three quarter-point rate cuts between now and the end of the year.

That’s weighing on the U.S. dollar, which was down 0.22% against a basket of its global currency peers.

“Stagflation, that feared condition first discovered in the 1980s which includes low economic growth and inflation, is an almost impossible condition to cure with tweaking Fed Funds up and down in 25 basis-point increments,” said Mark Malek, chief investment officer at Siebert Financial.

That concern is powering gold prices higher, and has carried the precious metal to a gain of more than 40% this year.

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