Gold chart 5 years: how the precious metal conquered the markets

In October 2025, gold trades around $4,270 per ounce, consolidating a spectacular rise in recent years. To understand this surge, simply look at a 5-year gold chart: the metal went from around $1,900 USD in 2020 to surpassing $4,200 USD today, a jump of +124% in just five years. This behavior is not accidental but a market response to concrete economic factors that have redefined the real value of gold in modern portfolios.

Two decades of transformation: from neglect to relevance

The trajectory of gold over the past twenty years tells the story of how markets reprocessed its role. In the early 2000s, the metal traded below $430 USD per ounce. Today, that value has multiplied by ten. Although it may seem surprising, this revaluation responds to well-defined economic cycles.

The first push (2005-2010): Structural weakness of the dollar, rising energy prices, and distrust in financial assets after the subprime mortgage collapse propelled gold from $430 USD to over $1,200 USD. The collapse of Lehman Brothers in 2008 accelerated institutional and central bank demand, cementing its status as a safe haven.

The technical pause (2010-2015): After the financial panic, markets normalized, and gold entered a consolidation phase, oscillating between $1,000 and $1,200 USD. Although it lost some speculative shine, it maintained its defensive function in diversified portfolios.

The resurgence (2015-2020): Trade tensions between the United States and China, rising sovereign debt, and historically low interest rates reopened appetite for the metal. The COVID-19 pandemic acted as a definitive catalyst: gold broke the $2,000 USD mark for the first time in its modern history, confirming its antifragile nature.

The unprecedented rally (2020-2025): This stage represents the most significant movement. Looking at a 5-year gold chart of this period clearly shows how the metal accelerated its ascent. The balance between institutional demand, inflation fears, and expansive monetary policies generated an almost correction-free bullish cycle.

Real returns: comparison with major indices

Gold’s return over the last decade hovers around 7% to 8% annualized, a remarkable figure considering this asset does not generate dividends or cash flows. From 2015 to 2025, the metal advanced approximately +295% in nominal terms.

To put it in context: in the last five years, gold outperformed the S&P 500 and the Nasdaq-100, a rare milestone over long periods. While the Nasdaq-100 accumulated +115% and the S&P 500 +94.35% over five years, gold positioned itself above both. This inversion of the usual ranking reflects how persistent inflation and low interest rates favored defensive assets over traditional equities.

However, the Nasdaq-100 remains the great winner of the 21st century with an accumulated return exceeding 5,000%. The contrast is instructive: while stock indices offer exponential growth in bullish cycles, gold provides stability when markets wobble. In 2008, stocks plummeted over 30%, but gold only retreated about 2%. In 2020, it repeated its defensive role when uncertainty paralyzed equity markets.

Why gold appreciates: the true drivers

Gold’s behavior over two decades is driven by four fundamental economic factors:

Negative real interest rates: When real yields on bonds (nominal rates minus inflation) fall into negative territory, investors seek alternatives. Quantitative easing policies by the Federal Reserve and the ECB compressed real returns, multiplying demand for gold.

Dollar depreciation: Since gold is priced in US dollars, a weak currency makes it cheaper for international buyers and stimulates demand. Dollar declines since 2020 coincided exactly with the largest bullish jumps in the metal.

Persistent inflation and fiscal deficits: Massive public spending programs post-pandemic rekindled inflation fears. Investors use gold as an anchor to preserve purchasing power amid monetary erosion.

Geopolitics and reserve diversification: Trade conflicts, sanctions, and changes in global energy policies prompted central banks in emerging economies to increase their gold reserves as a way to reduce dependence on the dollar.

Practical integration into portfolios: beyond speculation

Gold should not be viewed as a speculative vehicle but as a tool for patrimonial stability. Its main function is not to generate extraordinary gains but to protect the real value of the portfolio against unforeseen shocks.

Financial managers typically recommend an exposure of 5% to 10% of total assets in physical gold, ETF-backed metal, or replication funds. In highly equity-exposed portfolios, this allocation acts as insurance against extreme volatility.

A key advantage of gold: its absolute universal liquidity. Regardless of market or timing, it can be converted into cash without suffering the swings of sovereign debt or capital restrictions. In times of financial instability or monetary tensions, this feature becomes exceptionally valuable.

Conclusion: gold as a trust narrative

Gold remains an unavoidable benchmark in global finance. Its returns do not stem from corporate balance sheets or dividends but from something more fundamental: trust in monetary systems and political stability.

When that trust erodes — due to inflation, debt, conflict, or exchange rate volatility — gold returns to the center of markets. The 5-year gold chart documents this return. Over the last decade, it proved capable of competing with major stock indices; in the last five years, it surpassed them.

It is no coincidence: investors seek stability in an environment that provides less and less of it. Gold does not promise accelerated wealth nor substitute growth. It is a silent hedge that appreciates when other assets falter. For those building balanced portfolios, it remains an essential piece of the global financial puzzle, just as it was twenty years ago.